Series 7 - General Securities Representative Exam
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Which of the following is TRUE regarding the NASDAQ short sale rule?
It prohibits member firms from effecting short sales at or below the current inside ask as disseminated by Nasdaq whenever that ask is lower than the previous inside ask.
A
It applies to all stocks
B
It prohibits member firms from effecting short sales at or below the current inside bid as disseminated by Nasdaq whenever that bid is lower than the previous inside bid.
C
It applies to stocks traded on NYSE and Nasdaq
D
Explanations
It applies to the inside bid price (not the ask price) and is designed to keep short sellers from continually driving down the price of an underlying security