3

Question 1

If an exchange has one entity that controls the trading in a specific stock, this entity is referred to as a:

Answer 1

Designated market maker

Question 2

A broker-dealer that clears its trades through another broker-dealer is referred to as:

Answer 2

An introducing firm

Question 3

Since a broker-dealer does not clear its own transactions, it sets up an account at a clearing broker-dealer and provides the clearing broker-dealer with information on each of its individual customers. This account is referred to as a(n):

Answer 3

Fully disclosed account