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.
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.
