As of December 2005,trading licenses are required to conduct trades on the floor of the NYSE. Which of the following statements about these trading licenses is/are correct?
I. Licenses are auctioned off in a special type of auction called a Dutch auction.
II. Only a member organization of the NYSE is eligible to bid for a trading license.
III. The SEC determines the maximum bid price.
IV. Trading licenses are good for 10 years.

Question

Quizplus · Accepted Answer

I. Licenses are indeed auctioned off in a Dutch auction, where the price starts high and decreases until a bid is made. II. Only member organizations of the NYSE can bid for a trading license, making both statements I and II correct. III and IV are incorrect; the SEC does not determine the maximum bid price for a trading license, and trading licenses are not issued for a period of 10 years.

As of December 2005,trading Licenses Are Required to Conduct Trades