SIE Exam Question 260: Answer and Explanation

Question: 260

The least liquidity in the securities shown below would be found:

• A. in securities traded on the Pink Quote system
• B. in securities listed on regional stock exchanges
• C. in T-bills
• D. in general obligation issues

Correct Answer: A

Explanation:

A: Pink sheets: the Pinks: the Pink quotes: All these terms in your textbook speak of thinly traded, closely-held, low daily volume stocks, where liquidity is not especially present when compared to NYSE and NASDAQ stocks.