e NYSE? firm. To buy or sella stock listed on the NYSE, the investor contacts th vestors who trade stock have accounts at a y or sell to the NYSE. There a computer matches up orders and communicates the executed order to the * some transactions, the brokerage firm submits a message to one of its mplete, the floor trader sends a confirmation to the brokerage, which forwards it to the investor. (Select from the drop-down me por traders: (Select the best answer below.) who negotiates a price with another tra O A. execute trades on the floor for themselves or someone else. O B. help make a market in one or more stocks by taking the position consistent with orders placed by clients. O C. execute trades on the floor for bankers. O D. help make a market in one or more stocks by taking the position opposite of orders placed by clients.
e NYSE? firm. To buy or sella stock listed on the NYSE, the investor contacts th vestors who trade stock have accounts at a y or sell to the NYSE. There a computer matches up orders and communicates the executed order to the * some transactions, the brokerage firm submits a message to one of its mplete, the floor trader sends a confirmation to the brokerage, which forwards it to the investor. (Select from the drop-down me por traders: (Select the best answer below.) who negotiates a price with another tra O A. execute trades on the floor for themselves or someone else. O B. help make a market in one or more stocks by taking the position consistent with orders placed by clients. O C. execute trades on the floor for bankers. O D. help make a market in one or more stocks by taking the position opposite of orders placed by clients.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
12
Transcribed Image Text:NYSE. Describe a typical stock transaction at the New York Stock Exchange (NYSE). What are floor traders? What are specialists? What other exchanges trade stocks in a similar manner to
the NYSE?
Investors who trade stock have accounts at a
firm. To buy or sell a stock listed on the NYSE, the investor contacts the brokerage firm, which electronically sends the request to
buy or sell to the NYSE. There a computer matches up
orders and communicates the executed order to the brokerage firm. In the traditional method, which is still used
for some transactions, the brokerage firm submits a message to one of its
who negotiates a price with another trader who is trying to sell or buy the stock. Once the trade is
complete, the floor trader sends a confirmation to the brokerage, which forwards it to the investor. (Select from the drop-down menus.)
Floor traders: (Select the best answer below.)
A. execute trades on the floor for themselves or someone else.
B. help make a market in one or more stocks by taking the position consistent with orders placed by clients.
C. execute trades on the floor for bankers.
D. help make a market in one or more stocks by taking the position opposite of orders placed by clients.
What other exchange trades stocks in a similar manner to the NYSE? (Select the best answer below.)
A. NYSE MKT LLC
B. National Stock Exchange
C. North American Stock Exchange
D. California Stock Exchange
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