Series 7 - General Securities Representative Exam

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Your brokerage firm is acting as a market maker in some large cap technology stocks that are traded on the NASDAQ. How is your firm compensated for this market making activity?

Spread
A
Commission
B
5% FINRA rule
C
12B-1 fees
D

Explanations

Compensation for acting as a market maker is the difference between the bid and the ask prices - AKA the spread

Pricing