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STC SIE Chapter 1 Questions and answers | With complete solution 2024/25
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STC SIE Chapter 1 Questions and answers | With complete solution 2024/25
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STC SIE Chapter 1 Questions andanswers | With complete solution
2024/25
True or False: The offer (ask) is the price at which a broker-dealer is willing to buy shares
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from a customer. - False. The bid price is the price at which a firm will buy, while the offer
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(ask) is the price at which it will sell.
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ii Identify the acronym: OTC - Over-the-counter ii ii ii ii ii ii ii
ii What is the price at which a dealer is willing to sell? - The ask or offer price
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What is the role of a broker-dealer's operations department? - To process paperwork,
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handle funds and securities transfers, and settle and confirm transactions
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BD employees who are involved in the investment banking and securities business are
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called ____________________________. - BD employees who are involved in the
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investment banking and securities business are called registered representatives.
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ii Explain the secondary market. - The market on which existing securities are traded
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ii Identify the acronym: RR - Registered representative ii ii ii ii ii ii ii ii
A ______ is any person that executes ______ transactions in securities for the account of
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others. - Broker; agency
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In an _______ arrangement, a clearing firm doesn't have information on each individual
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customer of an introducing firm. - Omnibus
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What is a dark pool? - A dark pool is a place for large institutional investors and high-
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frequency traders to trade directly with one another. ii ii ii ii ii ii ii
Define a prime broker. - A BD that clears and settles trades effected by one or more
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executing brokers at the direction of the customer
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In a _____ _________ account, information about each customer of the introducing firm is
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sent to the clearing firm. - Fully-disclosed
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ii A Nasdaq-listed stock trades in the __________ market. - Secondary
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ii QIB stands for ___________________________. - Qualified Institutional Buyer (QIB)
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