Securities Trader Exam (Series 57) Flashcards
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How many questions are on the Series 57 exam, and how many are scored?
50 scored questions.
How much time are you allotted for the Series 57 exam?
105 minutes (1 hour and 45 minutes).
What score do you need to pass the Series 57?
A score of 70%.
What is the cost of the Series 57 exam?
$105.
Roughly how much time do you have per question on the Series 57?
About 2 minutes per question — 105 minutes divided across 50 scored questions leaves just over 2 minutes each.
What co-requisite is generally required alongside the Series 57?
The Securities Industry Essentials (SIE) exam. Candidates typically must pass both the SIE and the Series 57 to earn the Securities Trader registration.
What is a market maker's obligation regarding two-sided quotes?
A registered market maker must maintain continuous two-sided quotations (a bid and an offer) meeting minimum size and price (quoting obligation) requirements during regular market hours.
What does Regulation SHO govern, and what is a 'locate'?
Reg SHO governs short selling. Before a short sale, a broker-dealer must have reasonable grounds to believe the security can be borrowed and delivered — the 'locate' requirement — to prevent naked short selling.
What is a bona fide market-making exception under Reg SHO?
Bona fide market makers may be exempt from the locate requirement for short sales in connection with genuine market-making activity, since they provide liquidity and may need to sell short to offset customer buying.
What is the difference between a market order and a marketable limit order?
A market order executes immediately at the best available price with no price limit. A marketable limit order is a limit order priced at or through the current opposite-side quote, so it is immediately executable but capped at its limit price.
What is the Series 57 exam?
The Securities Trader Qualification Exam. Passing it qualifies an individual to engage in proprietary trading and market-making activities in equity, preferred, and convertible debt securities.