Financial Management fourth set

Nasdaq is an example of an auction market. 

• True

• False

Stocks that are listed on dealer markets generally have a single dealer for each stock.           

• True

• False

Markets are where prices are determined (T/F)        

• True

• False

The NYSE specialist has an objective to provide liquidity to the market. (T/F)      

• True

• False

The NYSE specialist will charge a higher price to sellers of the stock and a lower price to the buyer of the stock

• True

• False

The bid-ask spread is compensation to the specialist for providing liquidity to the market. (T/F)

• True

• False

A market order to buy a stock would execute at the current ask price (T/F)

• True

• False

A market order to sell a stock would execute at the current ask price (T/F)

• True

• False

A limit order to buy a stock at $101.55 would execute at the current ask price (T/F)           

• True

• False

A limit order to buy a stock at $101.55 would execute when the ask price is at or below $101.55 (T/F)  

• True

• False