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WorksheetsQuiz on Securities Trading
Total questions: 11
Worksheet time: 11mins
What is the primary market?
Market for bond trading
Market for existing securities
Market for new issues of securities
Market for private placements
What is an Initial Public Offering (IPO)?
A type of bond offering
A private firm's first issue of shares to the public
A sale of additional shares by a public company
A method of trading in dark pools
What is the bid price in dealer markets?
The price at which the dealer is willing to sell
The price at which the dealer is willing to buy
The average price of securities
The price at which investors can buy securities
What is a market order?
An order to buy or sell immediately at current market price
An order that requires a broker's approval
An order to buy or sell at a specified price
An order that can be canceled at any time
What is the maintenance margin?
The minimum equity that must be kept in a margin account
The percentage of equity in a short sale
The initial margin requirement for buying on margin
The total value of securities in a margin account
What happens during a margin call?
Investors are given a grace period to pay
Investors are required to sell their securities
Investors must deposit additional funds or securities
Investors can withdraw their funds
What is the purpose of underwriters in public offerings?
To advise firms on terms for selling securities
To buy securities for their own account
To provide loans to investors
To trade securities on the secondary market
What is insider trading?
Trading based on inside information
Trading based on public information
Trading that is regulated by the SEC
Trading that occurs in dark pools
What is a short sale?
Borrowing shares to sell them at a higher price
Buying shares with the expectation of price increase
Selling shares that are owned by the investor
Trading shares without any margin requirements
What is the role of a stock exchange?
To provide loans to companies
To manage investment portfolios for clients
To facilitate the buying and selling of securities
To regulate the prices of commodities
What is a limit order?
An order that executes immediately at the market price
An order that guarantees execution at any price
An order to buy or sell at a specified price or better
An order that can only be placed during market hours
