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13 Cards in this Set
- Front
- Back
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Types of orders accepted by the DMM
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1.mkt orders
2.open orders 3.day orders *NOT HELD orders are handled by the floor broker,NOT the DMM |
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T or F
All orders entered with the DMM EXCEPT DAY orders are considered to be GTC |
T
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T or F
DMM can contact potential buyers if there is an influx of sell orders |
T
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Stopping stock
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Occurs when the DMM guarantees a floor broker a specific price for a limited period of time
-Done for members of NYSE only -FLoor governors position is not required |
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The DMM order display book
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Record of LIMIT ORDERS
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Bid price
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Highest price on the 'buy' side
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Ask price
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Lowest price on the 'sell' side
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Size of the mkt
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# of shares at the bid and at the ask
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When orders are entered on the floor of an exchange,competetive bidding occurs and orders are executed based on:
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1.Priority-large orders and mkt orders
2.Parity- orders w matching size 3.Precedence- orders that are received 1st *Premiums are not considered in auction procedures |
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Reducing limit orders on ex-date
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On the ex date, the DM will reduce all BL/SS orders on the book by the full amount of the dividend
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People allowed to trade on the NYSE floor
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1.DMM
2.Floor broker/$2 broker 3.Competetive trading *RR CANT trade on the floor |
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An order ticket which is sent to the floor of a stock exchange for ex must conatin
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1.Type of order
2.Time of entry 3.Designation of the customers account *Commissions will NOT appear |
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Super DOT
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Designated Order Turnaround system automatically executes mkt and limit orders by routing them directly to the DMM
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