Series 7 Exam Practice Test 11: Securities Markets

1. The over-the-counter market is best described as a(n)

2. Which of the following is a third market trade?

3. A client enters a buy stop order for LMN at $20. After the order is entered, trades occur as follows:

19.25, 19.75, 20.13, 19.88, 20

The order was

4. Investors may sell a security short for

I. speculation

II. hedging purposes

III. arbitrage situations

5. Which of the following types of orders becomes a market order as soon as a security passes a specified price?

6. The inside market is the

7. A Designated Market Maker receives an order to buy 1,000 shares of ABC stock. Place in order from highest to lowest, what the DMM looks at to fill the order.

I. Parity

II. Precedence

III. Priority

8. Which of the following access levels of NASDAQ includes subject quotes?

9. All of the following are reasons an investor might sell a security short EXCEPT:

10. If the inside market for an AAD common stock is 50.20–50.35, where can a Designated Market Maker enter an order to sell from their own inventory?