SIE Knowledge of Capital Markets Question 15: Answer and Explanation

Question: 15

Which of the following statements is true regarding the named organization?

• A. The CBOE's jurisdiction for trading is limited to the United States, Canada, Mexico, Puerto Rico and the U.S. Virgin Islands.
• B. FINRA's role was originally defined by Congress to include banks and broker-dealers.
• C. MSRB's function was originally defined to include municipal advisors.
• D. NYSE is the stock exchange with access to the largest selection of companies in the world, when considering the market capitalization of their listed stock.

Correct Answer: D

Explanation:

D: Choice D is correct. Of American exchanges still in existence, the New York Stock Exchange (NYSE) is the oldest. Based on market capitalization of securities traded, it is the largest stock exchange in the world. Choice A is incorrect because the Chicago Board Options Exchange's (CBOE's) jurisdiction for trading includes several other countries. The CBOE's trading volume is second-largest in the United States. Choice B is incorrect because FINRA's role was not originally defined by Congress to include banks. Choice C is incorrect because municipal advisors were added to the oversight responsibility of the Municipal Securities Rulemaking Board (MSRB) in 2010.