SIE Exam Question 149: Answer and Explanation

Question: 149

When orders have the same price, what is the order of prioritization for executing each?

I. Parity

II. Precedence

III. Priority

  • A. I and II
  • B. II, I, and III
  • C. III, II, and I
  • D. I, II, and III

Correct Answer: C

Explanation:

When orders come in at the same price, they are filled based on priority (first in, first executed), precedence (the larger of the orders is executed first), and parity (if all orders are the same, outstanding orders and shares are divided and shared).

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