Series 57 – Practice Test 3

When trading in a stock is halted due to a pending new release, a variety of modifiers are used to announce the halt, the release of the news, and when trading will begin. Which of the following statements are true?

Stock trades done on the weekends and exchange-observed holidays shall be reportable to the Tape:

When a market-making member firm submits a request to enter quotes into the NASDAQ system for an additional stock, assuming the firm meets all capital and other requirements, the firm will receive approval:

The LULD, limit up limit down rules will go into effect in which of the following situations?

The principal difference between a market hours  Immediate or Cancel order and a system hours Immediate or Cancel order is:

Pegged orders are often used to give investors and market makers greater flexibility in adjusting to market conditions during the trading day. Each of the following statements are true regarding these types of orders except:

Under the limit order protection rules of the SEC, trade-through transactions are generally not permissible, with the exception of:

Compute the Volume Weighted Average Price using the following trade data:

• 1,000 shares traded at 120

• 3,000 shares traded at 121

• 5,000 shares traded at 121.40

• 2,000 shares traded at 121.20

• 4,000 shares traded at 121.60

• 500 shares traded at 120.90

The minimum net capital requirement for a market maker making 100 markets in stocks below $5.00 per share and 800 market in stocks price above the $5.00 price level will be:

Regulation M Rule 103 pertains to passive market making restrictions. Which of the following statements is accurate?