【正文】 hange is offering to buy a security for $. A broker in Oklahoma City wants to sell the security for his client. The Intermarket Trading System shows a bid price of $ on the NYSE. What should the broker do?A.Route the order to the NYSE.C.Route half of the order to AMEX and the other half to the NYSE.E.t matter—he should flip a coin and go with it.$4,800.B.$2,250.D.48.You sold short 150 shares of mon stock at $27 per share. The initial margin is 45%. Your initial investment wasA.$12,.C.$1,. ignore interest on margin.A.$C.$ ignore interest on margin.A.$C.$B.D.B.D.28%B.14%D.24%28%B.14%D.24%%B.%D.56.Assume you sell short 100 shares of mon stock at $30 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $35 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction.A.%C.%100 sharesB.50 sharesD.25 shares100 sharesB.50 sharesD.25 shares40%B.35%D.60.Assume you sold short 100 shares of mon stock at $70 per share. The initial margin is 50%. What would be the maintenance margin if a margin call is made at a stock price of $85?A.%C.%$50B.$35D.62.You sold short 100 shares of mon stock at $75 per share. The initial margin is 50%. At what stock price would you receive a margin call if the maintenance margin is 30%?A.$C.$red herring.B.greenmail.D.headstone.I, II, and IIIB.I, II, and VD.IV onlyI, II, and IIIB.I, II, and VD.IV, V, and VIKnowledge of all applicable laws, rules and regulationsB.s investmentsC.Reasonable inquiry into a client39。All of the options are required under the CFA Institute standards.the government.B.the public.D.clients and prospective clients.Short Answer Questions1.The trading of stock that was previously issued takes placeA.in the primary market.C.in the secondary and primary markets.Secondary market transactions consist of trades between investors.2.A purchase of a new issue of stock takes placeA.in the primary market.C.in the secondary and primary markets.E.AACSB: AnalyticBlooms: ApplyDifficulty: Basicin the secondary market.B.to unwary investors.D.AACSB: AnalyticBlooms: ApplyDifficulty: BasicSpecialists maintain a book listing outstanding unexecuted limit orders.B.Specialists stand ready to trade at quoted bid and ask prices.D.Specialists maintain a book listing outstanding unexecuted limit orders, earn ine from missions and spreads in stock prices, and stand ready to trade at quoted bid and ask prices.The specialists39。AACSB: AnalyticBlooms: ApplyDifficulty: Intermediateact as intermediaries between issuers of stocks and investors.B.accept deposits from savers and lend them out to panies.D.AACSB: AnalyticBlooms: ApplyDifficulty: Intermediatebuys the stock from the pany and resells the issue to the public.B.finds the best marketing arrangement for the investment banking firm.D.AACSB: AnalyticBlooms: ApplyDifficulty: Intermediatetransactions on the AMEX.B.transactions through the investment banker.D.transactions on the AMEX, through the investment banker, and in the OTC market.The secondary market consists of transactions on the organized exchanges and in the OTC market. The investment banker is involved in the placement of new issues in the primary market.8.Initial margin requirements are determined byA.the Federal Reserve System.C.the Federal Reserve System and the New York Stock Exchange.The Board of Governors of the Federal Reserve System determines initial margin requirements.9.You purchased JNJ stock at $50 per share. The stock is currently selling at $65. Your gains may be protected by placing aA.limitbuy order.C.limitsell order.E.AACSB: AnalyticBlooms: ApplyDifficulty: Intermediatelimitsell order.B.stopbuy order.D.None of the optionsWith a stopbuy order, the stock would be purchased if the price increased to a specified level, thus limiting your loss.11.Which one of the following statements regarding orders is false?A.A limitsell order is where investors specify prices at which they are willing to sell a security.C.A market order is an order to buy or sell a stock on a specific exchange (market).All of the order descriptions above are correct except a market order is an order to buy or sell a stock on a specific exchange (market).12.Restrictions on trading involving insider information apply to the following exceptA.corporate directors.C.All of the options are subject to insider trading restrictions.E.AACSB: AnalyticBlooms: ApplyDifficulty: Intermediatebroker39。dealer39。a price concession an investor may be forced to make.D.s missions and dealer39。broker39。s bidasked spread, and a price concession an investor may be forced to make.All of the options are possible costs of buying and selling a stock.14.Assume you purchased 200 shares of GE mon stock on margin at $70 per share from your broker. If the initial margin is 55%, how much did you borrow from the broker?A.$4,000C.$7,000E.AACSB: AnalyticBlooms: ApplyDifficulty: Intermediate$4,800.B.$5,600.D.AACSB: AnalyticBlooms: ApplyDifficulty: Intermediate