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FINRA Series 7

Category - Series 7

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A NYSE floor member executing an order for a public customer asks the specialist in the stock to guarantee a price while giving the customer an opportunity to obtain a better price. This procedure is known as:

a stop order
stopping stock
floor protection
a special deal

Explanation

Answer: B - stopping stock. This is the definition of the term “stopping stock”.

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FINRA Series 7

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FINRA Series 7

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