SIE Exam Question 247: Answer and Explanation

Question: 247

A market maker is obligated

• A. to maintain and honor firm quotes during trading hours
• B. to maintain subject quotes during trading hours
• C. to sell no less than one round lot to a customer inside the spread
• D. to buy no less than one round lot from a customer at its ask price

Correct Answer: A

Explanation:

A: Market making firms post firm quotes during the trading day at which they are obligating themselves to do business with other firms as well as retail customers.