Securities Trader Representative (Series 57) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for your Securities Trader Representative Test with interactive quizzes, flashcards, and detailed explanations. Boost your confidence and ensure success on your exam day!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In OTC transactions of Nasdaq-listed securities, which statement is TRUE?

Transactions between 4:00 p.m. and 8:00 p.m. are designated ".Z"
Trades are reported to the Consolidated Tape
Trade tickets are time-stamped at the time of execution
Transactions cannot be executed through the Nasdaq Market Center Execution System

The correct answer is: Trade tickets are time-stamped at the time of execution

The accurate statement regarding OTC transactions of Nasdaq-listed securities is that trade tickets are time-stamped at the time of execution. This means that when a transaction occurs, the details of that trade, including the time it took place, are recorded immediately. This time-stamping is crucial for ensuring accuracy in trade reporting and for maintaining the integrity of the trading process. Time-stamping helps to provide a clear audit trail and is essential for both regulatory compliance and for the traders involved to have a verifiable record of their transactions. It ensures that both parties to a trade have a consistent understanding of when the trade occurred, which is important for dispute resolution and for assessing the timely execution of trades. The other choices present information that does not accurately reflect the characteristics of OTC transactions. For example, statements about transaction designations or reporting protocols may not accurately align with current operational standards or regulatory practices within the Nasdaq ecosystem.