What Should a Broker Do If His Quoted Price Is

question 85

Multiple Choice

What should a broker do if his quoted price is hit simultaneously by several dealers for a total amount greater than that for which the price concerned was valid?

• A) allot the amount for which the price is valid pro rata amongst some principals in accordance with the amount proposed by each and inform the other dealers that "nothing was done"
• B) decide which principals he will allot the amount for which the price is valid and inform the other dealers that "nothing was done"
• C) evenly allocate the amount for which the price is valid amongst all the principals and inform all the relevant dealers
• D) apportion the amount for which the price is valid pro rata amongst all the principals concerned in accordance with the amount proposed by each and inform all the relevant dealers

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Definitions:

Seasonal Variation

Fluctuations in business activity, sales, or other economic indicators that occur at regular intervals based on the season.

ACCC

The Australian Competition and Consumer Commission, a regulatory body responsible for enforcing laws to prevent unfair market practices and protect consumer rights.

Market Power

The ability of a company or entity to influence the price and output levels in the market.

Customers' Preferences

The tastes, preferences, or choices of consumers regarding products or services which can impact market demand and influence business strategies.