Brian and Nancy both use the same brokerage firm. On the same day, Brian puts in a market order to buy 150 shares of Ford stock and Nancy requests to sell 150 shares of Ford stock. The brokerage firm completes this trade by taking the shares from Nancy and giving them to Brian. This exchange is not completed through a security exchange and is called a
A) security transaction.
B) full buy order.
C) short order.
D) market order.
E) matched order.

Question

Quizplus · Accepted Answer

This exchange is not completed through a security exchange, therefore it is considered a matched order. The brokerage firm matches the order to buy and the order to sell from two different clients. This is also known as an over-the-counter (OTC) transaction.

Brian and Nancy Both Use the Same Brokerage Firm