Series 7 Exam Question 380: Answer and Explanation

Question: 380

The Order Audit Trail System tracks the

• A. execution of an order only
• B. cancellation of an order only
• C. entire life of an order from entry to execution
• D. None of the above

Correct Answer: C

Explanation:

C. The Order Audit Trail System (OATS) is an automated computer system that tracks the life of an over-the-counter (OTC) order from entry to execution or cancellation. OATS tracks all OTC securities, including OTCBB (over-the-counter bulletin board) stocks and OTC Pink Market stocks.