SIE Exam Question 395: Answer and Explanation

Question: 395

It is not unusual for a broker-dealer to fill a customer order for an NYSE stock as principal out of inventory in lieu of wiring it to the floor the exchange.

• A. this is a second market transaction
• B. this is a 4th market transaction
• C. this is a 1st market transaction
• D. this is a 3rd market transaction

Correct Answer: D

Explanation:

D: Trades in the 3rd market are trades in stocks which are executed off the floor of the stock exchange on which those stocks are listed.