Deck · FINRA SIE
Understanding Trading, Customer Accounts and Prohibited Activities
Orders and settlement, corporate actions, account types and registration, AML, and prohibited activities (31% of the exam).
244 cards · audited · SM-2 spaced repetition
Included with the full FINRA SIE program — 4 decks, 790 cards.
Sample cards
What is a market order?
An order to buy or sell immediately at the best available price. It guarantees execution but not price.
What does a market order guarantee — execution or price?
Execution. It fills at the best price available at that moment, which may differ from the last quote the customer saw.
Why can a market order be risky in a thinly traded stock?
With little liquidity quoted, the order may fill at a price far from the last trade because it executes against whatever shares are available.
What is a limit order?
An order to buy or sell at a specified price or better. It guarantees price (if it executes) but not execution.
Where is a buy limit order placed relative to the current market price?
At or below the current market price. It executes only at the limit price or lower.
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Master understanding trading, customer accounts and prohibited activities — and the rest of FINRA SIE.
One program. 790 audited cards across 4 decks.