The forms and methods of stock market operation

1. A competent U.S. financial manager must understand the way U.S. stock markets are structured and operate. In the United States, the stock markets consist of primary markets, secondary markets, listed security exchanges, over-the-counter markets, as well as the regulations that monitor these markets.

Which major domestic stock market has the most restrictive listing requirements in terms of the market value of the listed firm?

A. The New York Stock Exchange (NYSE)

B. The National Association of Security Dealers Automated Quotation System (NASDAQ)

C. A regional exchange, such as the Chicago Stock Exchange

2. (Trading floor brokers, Supplemental liquidity providers - SLPs, OR Designated market makers - DDMs) act as agents for investors who want to buy or sell stocks.

3. True or False: One of the major differences between the New York Stock Exchange (NYSE) and the over-the-counter (OTC) markets is that the OTC operates an auction on a centralized physical exchange, while the NYSE completes all of its transactions in a decentralized electronic marketplace.

False

True