Which of the following apply to a specialist who trades on the floor of the NYSE?
I.provides liquidity for an individual security
II.partially being replaced by SuperDOT
III.pays an annual fee for a trading license
IV.acts as a dealer
A)I and III only
B)II and IV only
C)I, III, and IV only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Specialists on the floor of the NYSE provide liquidity for an individual security and act as dealers. They also pay an annual fee for a trading license. However, SuperDOT is a trading system introduced by the NYSE that allows for electronic order entry and execution without the need for a specialist, so it does not directly apply to the role of a specialist. Therefore, options II is not correct. The correct options are I, III, and IV, making option C the best answer.

Which of the Following Apply to a Specialist Who Trades