Exam 5: How Securities Are Traded

The independent,quasi-judicial agency of the U.S.government that administers laws in the securities field and protects investors and the public in securities transactions is:

Trading delays and trading halts are types of circuit breakers employed by the NYSE.

"Street names" are the nicknames used for commonly-held securities,such as "IBM" for International Business Machines.

The Securities and Exchange Commission is a division of the Department of Justice.

A newer variation of the wrap account is the:

An order that must be filled immediately in its entirety,or otherwise must be canceled,is known as:

Which of the following statements regarding discount brokers is true?

All asset management accounts offer automatic reinvestment of credit balances in shares of a money market or other fund.

The use of stock certificates,compared to book-entry systems,is on the rise due,in part,to increased computer fraud.

Charles Schwab,Fidelity,and Vanguard are examples of premium discount brokers.

What is the rationale for different margin requirements on different types of securities?(For example,50 percent on common stock,and 30 percent on bonds)

If a security issue is registered with the SEC,there is less chance the investor will lose money on the investment.

A sell stop order is placed:

Specialist trading on the NYSE now accounts for the majority of share volume.

Designated market makers (DMMs)are required to:

Under margin accounts,investors can purchase more stock without putting up additional cash by leveraging the value of the eligible shares.

Which of the following accounts often requires an annual fee?

Investors who sell short are expecting the price of the security to fall.

What are the advantages to investors of keeping their securities in street name?

Which of the following institutions has helped to eliminate the use of stock certificates by placing stock transactions on computers?