FINRA General Securities Representative SIE Question # 43 Topic 5 Discussion
SIE Exam Topic 5 Question 43 Discussion:
Question #: 43
Topic #: 5
A market maker quotes the market on an NMS equity security as 39.05 - 39.15 [5x10]. Which of the following orders is the market maker required to fill?
The quote indicates that the market maker is willing to buy 500 shares at $39.05 (bid) and sell 1,000 shares at $39.15 (ask). Market makers are required to honor their quoted size for orders that fall within their bid/ask prices.
D is correctbecause the market maker is obligated to sell at least 1,000 shares at $39.15 as it falls within the quoted size and price.
Bis incorrect because the bid is at $39.05, not $39.00.
Cis incorrect because $39.10 does not match the ask price.
Ais invalid as a stop order would not activate at $39.00.
[Reference:Securities Exchange Act of 1934, Regulation NMS Rule 602, ]
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