Chapter 5 Practice Questions
1. Under NYSE rules, a U.S. domestic issuer must satisfy which of the following listing requirements?
A. It must have 400 stockholders and 1.1 million common shares outstanding
B. It must have 200 stockholders and 1 million common shares outstanding
C. It must have 400 stockholders and 1.1 million preferred shares outstanding
D. It must have 200 stockholders and 1 million preferred shares outstanding
2. Which of the following orders becomes a market order when a stock has begun to trade at or through a price specified by a client?
A. Stop-limit order
B. Stop order
C. Limit order
D. Market order
3. A New York Stock Exchange member that sells a specific stock out of its own account and maintains an orderly market for the shares of that stock is considered a:
A. Transfer agent
B. Designated Market Maker
C. Broker-dealer
D. Two-dollar broker
4. A market-wide trading halt is triggered when:
A. The S&P 500 declines by 13% after 3:45 p.m. ET
B. The S&P 500 declines by 7% prior to 2:00 p.m. ET
C. The S&P 500 declines by 7% at any time during the day
D. The S&P 500 declines by 20% at any time during the day
5. To be initially listed on the Nasdaq Capital Market, how many market makers must the issuer have?
A. At least two
B. At least three
C. At least four
D. It is not a requirement
6. FINRA considers the issuance of, the display of, and the trade reporting with additional Market Participant Identifiers to be a\n:
A. Right
B. Privilege
C. Obligation
D. Violation
7. Nasdaq Market trading hours are:
A. 4:00 a.m. to 4:00 p.m.
B. 9:30 a.m. to 4:00 p.m.
C. 9:30 a.m. to 4:30 p.m.
D. 7:00 a.m. to 4:30 p.m.
8. An order is entered for 425 shares of XYZ Corporation. Which of the following terms most likely describes the order?
A. Mixed lot
B. Odd lot
C. Round lot
D. None of