4. Retail order flow is more desirable to a market maker because, relative to institutions/institutional orders,

a. retails traders are less likely to be informed

b. retail traders are more likely to use order splitting strategies

c. retail traders are more likely to direct their orders to specific trading venues

d. retails orders are usually subject to payment for order flow arrangements.

5. When the last sale price of PQR is $42, I enter a stop loss order trailing by $3. In which of the following situations does my order get triggered? Circle all that apply.

a. the trade at $42 is followed by trades at $40, $41 and $39.

b. the trade at $42 is followed by trades at $40, $43 and $41.

c. the trade at $42 is followed by trades at $40, $44 and $41.

d. the trade at $42 is followed by trades at $40, $44, $43, $44, $43 and $41.

6. With ABC trading around $55, an investor enters a stop loss order: sell 200 shares stop $52, limit $50. This is equivalent to ----

a. sell 200 shares limit $50.

b. sell 200 shares limit $52.

c. sell 200 shares at the market

d. None of the above.