You Recently Contacted a Brokerage Firm and Purchased 100 Shares

question 19

Multiple Choice

You recently contacted a brokerage firm and purchased 100 shares of stock.The brokerage firm acquired the shares for you by making a deal with a floor broker who represented one of the stock issuer's shareholders.Given this,you know your purchase:

• A)was conducted in the secondary market.
• B)occurred over-the-counter.
• C)was for shares of a stock listed on NASDAQ.
• D)occurred on an ECN.
• E)involved the issuance of new shares.

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Definitions:

Hedge

An investment or action taken to reduce the risk of adverse price movements in an asset.

Exchange Rate Exposure

The potential for a company's profitability, net cash flow, and market value to change because of a change in exchange rates.

Exchange Rate Quotations

The price of one currency in terms of another currency, commonly used in international trade and investment transactions.

Direct Quotations

Refers to the use of exact words from a source material, enclosed in quotation marks, in a written document.