Exercise
Answer the following questions.
1.Laura Hobbins, a trader with XLH Group, is reviewing trades to prepare the best execution report when she observes a trade noted with as/of. This means the trade took place:
A.In the firm’s proprietary trading account
B.In a customer’s margin account
C.On the business day immediately preceding the reported trade date
D.The trade has not yet occurred, but it will trade as/of a future date to be determined
2.The difference between the bid and the ask prices in an OTC quotation is known as:
A.Load
B.Spread
C.Markup
D.Commission
3.In an OTC quotation the “bid” price is:
A.The term “bid” refers to the lowest price a market maker will pay at any given time to purchase a specified number of shares of a stock.
B.The term “bid” refers to the highest price a market maker will pay at any given time to sell a specified number of shares of a stock.
C.The term “bid” refers to the highest price a market maker will pay at any given time to purchase a specified number of sha