1.Stop loss sell orders are:

A)   executed on an uptick only.

B)   placed to protect a short position.

C)   placed to protect the gains on a long position.

D)   executed at the current market price.

2.Which of the following statements about U.S. securities markets is TRUE?

A)   To be traded on the OTC market, a security must first be approved by the National Association of Securities Dealers.

B)   It is against U.S. securities laws to trade exchange-listed stocks off the floor of the exchange.

C)   The U.S. OTC market is the largest U.S. secondary market in terms of the number of issues traded.

D)   The U.S. OTC market is a subset of what is known as the Fourth Market.

3.Which of the following statements about security markets is FALSE?

A)   Primary market refers to the trading of securities on a major market such as the NYSE in the US.

B)   The secondary market refers to the trading of outstanding securities.

C)   The third market refers to OTC trading in exchange listed securities.

D)   The fourth market refers to the direct trading between two parties without a broker intermediary.

4.The trading of exchange registered securities over the counter by non-exchange member firms is called:

A)   the third market.

B)   the fourth market.

C)   the global market.

D)   block trading.

5.The direct exchange of securities between investors without using an intermediary or the services of a broker occurs in which of the following markets?

A)   The third market.

B)   The fourth market.

C)   Regional exchange markets.

D)   The over-the-counter market.

答案和详解如下：

1.Stop loss sell orders are:

A)   executed on an uptick only.

B)   placed to protect a short position.

C)   placed to protect the gains on a long position.

D)   executed at the current market price.

The correct answer was C)

Stop loss sell orders are limit sell orders that are placed below market price. When the share price drops to the designated price, a sell order is executed protecting the investor from further declines.

2.Which of the following statements about U.S. securities markets is TRUE?

A)   To be traded on the OTC market, a security must first be approved by the National Association of Securities Dealers.

B)   It is against U.S. securities laws to trade exchange-listed stocks off the floor of the exchange.

C)   The U.S. OTC market is the largest U.S. secondary market in terms of the number of issues traded.

D)   The U.S. OTC market is a subset of what is known as the Fourth Market.

The correct answer was C)

The OTC market is the largest U.S. market in terms of number of issues traded. However, it is about sixty percent of the size of the NYSE in terms of value. The OTC is also part of what is known as the Third Market. Stocks listed on an exchange may also be traded in the OTC market.

3.Which of the following statements about security markets is FALSE?

A)   Primary market refers to the trading of securities on a major market such as the NYSE in the US.

B)   The secondary market refers to the trading of outstanding securities.

C)   The third market refers to OTC trading in exchange listed securities.

D)   The fourth market refers to the direct trading between two parties without a broker intermediary.

The correct answer was A)

Primary capital markets refer to the sale of new issues of bonds or stocks.

4.The trading of exchange registered securities over the counter by non-exchange member firms is called:

A)   the third market.

B)   the fourth market.

C)   the global market.

D)   block trading.

The correct answer was A)

The third market is the portion of the Over the Counter (OTC) market in which non-member investment firms can make markets in and trade registered securities without going through the exchanges. The fourth market describes the direct exchange of securities between investors without using the services of a broker. Block trades are large trades often made by institutions.

5.The direct exchange of securities between investors without using an intermediary or the services of a broker occurs in which of the following markets?

A)   The third market.

B)   The fourth market.

C)   Regional exchange markets.

D)   The over-the-counter market.

The correct answer was B)

This is the definition of the Fourth Market. Recall that the Third Market is where non-member investment firms can make markets in and trade registered securities without going through the exchange.