Series 7 - General Securities Representative Exam
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Which of the following is true about a floor specialist stopping stock?
The specialist cannot stop stock under any circumstances
A
The specialist can only stop stock for non public orders
B
The specialist needs approval
C
The specialist is guaranteeing a price
D
Explanations
Stopping stock guarantees a specific execution price and can only be done for public orders. They buy and sell out of their own inventory; so they can stop stock