STC SIE Chapter 1 Questions and Answers Already Passed
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Course
STC SIE Chapter 1
Institution
STC SIE Chapter 1
STC SIE Chapter 1 Questions and
Answers Already Passed
True or False: The price at which a broker-dealer will purchase shares from a customer is called
the ask price. False. The price at which a broker-dealer will purchase shares is called the bid
price, while the ask price is the price at wh...
1 STC SIE Chapter 1 Questions and Answers Already Passed True or False: The price at which a broker -dealer will purchase shares from a customer is called the ask p rice. ✔✔False. The price at which a broker -dealer will purchase shares is called the bid price, while the ask price is the price at which they will sell shares. What does OTC stand for in financial markets? ✔✔Over -the-counter What is the term for the pri ce at which a dealer agrees to sell securities? ✔✔The offer or ask price What responsibilities does the operations department of a broker -dealer have? ✔✔They handle paperwork, manage funds and securities transfers, and ensure transactions are processed an d confirmed. Employees at broker -dealers who engage in investment banking and securities activities are known as __________. ✔✔Registered representatives 2 Define the secondary market. ✔✔It is the marketplace where investors buy and sell securities that ha ve already been issued. What is the meaning of the abbreviation RR in the context of finance? ✔✔Registered representative A ______ is a person who executes transactions on behalf of others, while an ______ executes transactions for its own account. ✔✔Broker; agent In an _______ arrangement, a clearing firm does not receive detailed information about individual customers from the introducing firm. ✔✔Omnibus What is the function of a dark pool? ✔✔It is a private forum for large institutional investors and high-frequency traders to trade without revealing their identities. What services does a prime broker offer? ✔✔A prime broker provides clearing and settlement services for trades executed by other brokers at the direction of their clients.
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