Question

An order for a New York Stock Exchange listed issue is routed by the member firm to a Third Market Maker rather than to the exchange floor. This practice is______.
A. prohibited
B. permitted only if the customer consents
C. permitted only if an attempt to fill the order on the NYSE fails
D. permitted if the price offered by the Third Market Maker is better

Answer 1

Answer:

D) permitted if the price offered by the Third Market Maker is better

Explanation:

The Securities Exchange Commission's (SEC) rules require that order executions must take place at the "best market" possible. A stock can be traded in several markets. The order can be routed to the market which provides the best price.