Securities Markets Flashcards Preview

Series 7 > Securities Markets > Flashcards

Flashcards in Securities Markets Deck (38):
1

OATS

Order audit trail system - tracks life of order entered OTC both listed and unlisted

2

GTC

Good Till Cancelled - expired last day of April or October

NYSE and Nasdaq no longer allow

3

SEC act of 1934 regulates:

Exchanges
Margin
Registration
Price manipulation

4

Stop limit order

Combination of both stop and limit orders, a first, then process

5

ACT

Automated confirmation transaction system - verifies details of all ORC transactions After execution

6

Limit orders

Executed at specific price or better

7

Manning rule

Customer Limit order protection rule, must execute order w/in 60 seconds, fill customer orders upto as many shares executed for own acct

8

Stop orders

Used for protection, only available through OTC, triggers then executes immediately

9

Exchanges

Auction markets, centralized trading, trading floor

10

AON

All Or Nothing - entire order executed same time, same price

Cannot break it up

11

Secondary market

Exchange or OTC

4 categories:
1st mkt - listed, on an exchange
2nd mkt - unlisted, OTC
3rd mkt - listed, OTC
4th mkt - ECN

12

Market order

Buy or sell a security, immediately, at best price available

13

Consolidated tape

Reports trades of Listed securities on different markets

Includes exchanges mkt and 3rd & 4th mkt,

does not include primary mkt or options mkt or bonds

ALREADY EXECUTED

14

SEC rule 104 stabilization

UW can buyback at or below POP for stabilization, no time limit

15

Stopping stock

DMm guarantees price up to 2 minutes

16

FOK

Fill or Kill - entire order executed, same time, same price or cancelled

Cannot be broken up

17

ECN

Electronic communication network - 24 hrs, lower cost, more liquidity

18

BLiSS

Stretch

19

Inside market

Highest bid, lowest ask

20

Threshold security

Heavily borrowed, difficult to borrow

21

SEC rule 201 stock decline

10% stock decline - no more short selling the following day

22

SLoBS

Stretch

23

Broker

Stretch

24

Size of the market

Shares available at the highest bid and the lowest ask

25

Spread

Difference between highest bid and lowest ask

26

Types of quotes

1. Firm - market maker, guaranteed execution, used for OTC, exchanges
2. Subject - nominal, subject to change, not guaranteed
3. Fast market - high level of trading/volatility, may sell lower or higher
4. Firm w/recall - i.e. 1 hr 5 min recall, give another dealer a chance to sell

27

OTC

Negotiated markets, no location, no electronic exchange, brokerage to brokerage

Any security may trade otc

28

NASDAQ access levels

1. Shows inside market
2. Quotes by all mkt makers
3. Mkt maker entry

29

IOC

Execute as much is possible and cancel the rest

Can be broken up

30

Day order

Cancelled by end of day

31

Selling short against the box

Shorting a security you own for tax deferral

32

CQS

Consolidated Quotation Service - lists all OPEN TRADES, listed, bid/ask, all mkts

All trades reported w/in 10 seconds of execution

33

Order of trading

1. Priority - price
2. Parity - time
3. Precedence - size

34

Dealer

Stretch

35

UTP

Universal trading platform - keeps track of all stop and limit orders

36

OTC pink mkt

Electronic quotes are firm
Printed are subject
Not an exchange
No 10k or 10q

37

How long must UW keep prospectus available after public offering becomes available

40 days

38

Reverse split impact on orders

All orders cancelled

i.e 1 for 2