Question 1

Dark pools, as well as crossing networks, are creating very fragmented markets for large trades and block trades.

Accepted Answer

Dark pools and crossing networks allow for trades to occur off of traditional public exchanges, which can result in a fragmentation of the market. This can impact the transparency and efficiency of the market, particularly for larger trades.

Question 2

The OTCBB is a regulated electronic quotation service that displays real-time quotes, last sale prices, and volume information in the OTC equity securities.

Accepted Answer

The statement is correct. The OTCBB (Over-the-Counter Bulletin Board) is a regulated electronic quotation service that displays real-time quotes, last sale prices, and volume information in the OTC (Over-the-Counter) equity securities. It was created by FINRA (Financial Industry Regulatory Authority) to provide increased transparency and access to information for investors trading in OTC markets.

Question 3

Direct market access (DMA) refers to the use of electronic systems to access various liquidity pools and execution venues directly, without the intervention of a sell-side firm trading desk or broker.

Accepted Answer

Direct market access (DMA) allows traders to access various markets and execute trades without the need for a middleman, such as a broker or a sell-side trading desk. It provides transparency and control to traders, giving them the ability to view real-time prices and execute trades quickly and efficiently.

Question 4

Since options exchanges are registered with the SEC, they too can initiate and operate stock exchanges. During 2007, two options exchanges, the International Securities Exchange (ISE) and Chicago Board Options Exchange (CBOE), began stock exchanges, called the ISE Stock Exchange and the Chicago Board Options Stock Exchange, respectively. Describe the two components of the ISE stock market.

Accepted Answer

The answer of Since options exchanges are registered with the...

Question 5

What does direct market access (DMA) refer to? Name two advantages of DMA to a buy-side firm?

Accepted Answer

The answer of What does direct market access (DMA) refer...

Question 6

The OTC market is often called a market for "listed" stock.

Accepted Answer

The OTC market is a market for unlisted stocks, meaning they are not traded on a formal exchange such as the NYSE or NASDAQ.

Question 7

The Pink Sheets is an electronic quotation system that displays quotes from broker dealers for many OTC securities.

Accepted Answer

The Pink Sheets is an electronic quotation system that displays quotes from broker dealers for many OTC securities.

Question 8

Contrast the differences between exchanges and publicly owned equity-based organization.

Accepted Answer

The answer of Contrast the differences between exchanges and publicly...

Question 9

Contrast the NYSE exchange with Nasdaq

Accepted Answer

The answer of Contrast the NYSE exchange with Nasdaq...

Question 10

Over the years, the Nasdaq became more of a stock market by adding trade and volume reporting and automated trading systems. In October 2002, the Nasdaq started a system, called SuperMontage. Describe how SuperMontage has changed Nasdaq.

Accepted Answer

The answer of Over the years, the Nasdaq became more...

Question 11

There are two overall market models for trading stocks. Name and describe these two market models.

Accepted Answer

The answer of There are two overall market models for...

Question 12

The Nasdaq, as an electronic exchange, has no physical trading floor, but makes all its trades through a computer and telecommunications system.

Accepted Answer

The statement is true. The Nasdaq operates as an electronic exchange without a physical trading floor.

Question 13

Describe the tasks of a NYSE specialist.

Accepted Answer

The answer of Describe the tasks of a NYSE specialist....

Question 14

Direct market trading is a relatively recent type of trading technique whereby an overall trade (either buy or sell) is conducted electronically in a series of small transactions instead of one large transaction.

Accepted Answer

Direct market trading, also known as direct market access (DMA), is not specifically about conducting an overall trade in a series of small transactions. It refers to traders having direct access to the financial markets, allowing them to place buy or sell orders directly with the exchange without needing to go through a broker.

Question 15

What is a dark pool? Describe two of the sponsors of dark pools.

Accepted Answer

The answer of What is a dark pool? Describe two...

Question 16

Among the advantages of dark pools are less or no visibility and no price discovery.

Accepted Answer

The answer of Among the advantages of dark pools are...

Question 17

In general, options trading is composed of one component: options on individual stocks.

Accepted Answer

Options trading can involve options on various underlying assets, including stocks, exchange-traded funds (ETFs), indexes, currencies, commodities, and more.

Quiz 18: Markets for Common Stock: Structure and Organization

Dark pools, as well as crossing networks, are creating very fragmented markets for large trades and block trades.

The OTCBB is a regulated electronic quotation service that displays real-time quotes, last sale prices, and volume information in the OTC equity securities.

Direct market access (DMA) refers to the use of electronic systems to access various liquidity pools and execution venues directly, without the intervention of a sell-side firm trading desk or broker.

What does direct market access (DMA) refer to? Name two advantages of DMA to a buy-side firm?

The OTC market is often called a market for "listed" stock.

The Pink Sheets is an electronic quotation system that displays quotes from broker dealers for many OTC securities.

Contrast the differences between exchanges and publicly owned equity-based organization.

Contrast the NYSE exchange with Nasdaq

Over the years, the Nasdaq became more of a stock market by adding trade and volume reporting and automated trading systems. In October 2002, the Nasdaq started a system, called SuperMontage. Describe how SuperMontage has changed Nasdaq.

There are two overall market models for trading stocks. Name and describe these two market models.

The Nasdaq, as an electronic exchange, has no physical trading floor, but makes all its trades through a computer and telecommunications system.

Describe the tasks of a NYSE specialist.

Direct market trading is a relatively recent type of trading technique whereby an overall trade (either buy or sell) is conducted electronically in a series of small transactions instead of one large transaction.

What is a dark pool? Describe two of the sponsors of dark pools.

Among the advantages of dark pools are less or no visibility and no price discovery.

In general, options trading is composed of one component: options on individual stocks.