Which of the following statements about trading stocks or securities markets is least accurate?
| ||
| ||
|
Commission brokers trade for a brokerage firm. Registered traders trade on their own behalf.
An investor sold a stock short and is worried about rising prices. To protect himself from rising prices he would place a:
| ||
| ||
|
A limit order to buy is placed below the current market price. A limit order to sell is placed above the current market price. A stop (loss) order to buy is placed above the current market price. A stop (loss) order to sell is placed below the current market price. A stop order becomes a market order if the price is hit.
To maintain an orderly market, a specialist would most likely:
| ||
| ||
|
Specialists act as brokers handling the limit order book as well as dealers by buying and selling stocks for their own account to maintain an orderly market and provide liquidity when there is inadequate order flow. Therefore, in order to provide additional liquidity and maintain the market flow specialist would need to sell in an up market and buy in a down market.
Members of the exchange who act as brokers but do not work for a specific brokerage firm are referred to as:
| ||
| ||
|
Floor brokers are independent brokers that help other brokerage firms fill orders when they are unable to handle the volume of orders.
| 欢迎光临 CFA论坛 (http://forum.theanalystspace.com/) | Powered by Discuz! 7.2 |