FINRA Series 24 - Unit 4 - Supervision of
Trading and Market Making
Brokers - correct answer ✔✔Match buyers to sellers and sellers to buyers.
Dealer - correct answer ✔✔Sells to customers from their own inventory
Hidden Profit - correct answer ✔✔When a firm charges a commission in addition to a markup or
markdown. This is a rules violation.
Security - correct answer ✔✔An instrument that signifies ownership in a corporation, a creditor
relationship toward a government or corporate entity, or access to enhanced terms of ownership of a
security.
Minimum price for listing a security on the NYSE. - correct answer ✔✔$4 per share at the time of listing.
Designated Market Maker (DMM) - correct answer ✔✔DMMs are the only people who are held
accountable for maintaining a fair and orderly market.
Retail Liquidity Providers (RLPs) - correct answer ✔✔Required to provide potential price improvement
for retail orders in the form of nondisplayed interest that is better than the best protected bid or the best
protected offer (PBBO).
Retail Member Organizations (RMOs) - correct answer ✔✔Eligible to submit certain retail order flow to
the exchange.
Retail orders - correct answer ✔✔Unmodified agency orders that originate from a natural person.
Dark Pools - correct answer ✔✔Trading volume that is offered away from, for example, a trading
platform such as a stock exchange.
Trading and Market Making
Brokers - correct answer ✔✔Match buyers to sellers and sellers to buyers.
Dealer - correct answer ✔✔Sells to customers from their own inventory
Hidden Profit - correct answer ✔✔When a firm charges a commission in addition to a markup or
markdown. This is a rules violation.
Security - correct answer ✔✔An instrument that signifies ownership in a corporation, a creditor
relationship toward a government or corporate entity, or access to enhanced terms of ownership of a
security.
Minimum price for listing a security on the NYSE. - correct answer ✔✔$4 per share at the time of listing.
Designated Market Maker (DMM) - correct answer ✔✔DMMs are the only people who are held
accountable for maintaining a fair and orderly market.
Retail Liquidity Providers (RLPs) - correct answer ✔✔Required to provide potential price improvement
for retail orders in the form of nondisplayed interest that is better than the best protected bid or the best
protected offer (PBBO).
Retail Member Organizations (RMOs) - correct answer ✔✔Eligible to submit certain retail order flow to
the exchange.
Retail orders - correct answer ✔✔Unmodified agency orders that originate from a natural person.
Dark Pools - correct answer ✔✔Trading volume that is offered away from, for example, a trading
platform such as a stock exchange.
