11. The secondary market is best defined by which one
of the following?
A. market in which subordinated shares are issued and resold
B. market conducted solely by brokers
C. market dominated by dealers
D. market where outstanding shares of stock are resold
E. market where warrants are offered and sold
12. An agent who maintains an inventory from which he
or she buys and sells securities is called a:
A. broker.
B. trader.
C. capitalist.
D. principal.
E. dealer.
13. An agent who arranges a transaction between a
buyer and a seller of equity securities is called a:
A. broker.
B. floor trader.
C. capitalist.
D. principal.
E. dealer.
14. The owner of one of the 1,366 trading licenses for
the NYSE is called a:
A. broker.
B. member.
C. agent.
D. specialist.
E. dealer.
15. The person on the floor of the NYSE who executes
buy and sell orders on behalf of customers is called a(n):
A. floor trader.
B. dealer.
C. specialist.
D. executor.
E. commission broker.
16. A market maker who acts as a dealer in one or more
securities on the floor of the NYSE is called a:
A. floor trader.
B. floor post.
C. specialist.
D. floor broker.
E. commission broker.
17. A floor broker on the NYSE does which one of the
following?
A. supervises the commission brokers for a financial firm
B. trades for his or her personal inventory
C. executes orders on behalf of a commission broker
D. maintains an inventory and takes the role of a specialist
E. is charged with maintaining a liquid, orderly market
18. An individual on the floor of the NYSE who owns a
trading license and buys and sells for his or her personal account is called
a:
A. floor trader.
B. exchange customer.
C. specialist.
D. floor broker.
E. market maker.
19. Which one of the following is the electronic
system used by the NYSE for directly transmitting orders to specialists?
A. OTCDOT
B. SuperDOT
C. Instinet
D. Internet
E. Floornet
20. The stream of customer orders coming in to the
NYSE trading floor is called the:
A. paper trail.
B. trading volume.
C. order flow.
D. bid-ask spread.
E. commission trail.
