Finra Series-6 Exam - Topic 9 Question 3 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 3
Topic #: 9

[All Series-6 Questions]

Which of the following are duties of the specialist on an exchange floor?

i. executing limit orders if/when the limit price specified is reached

ii. minimizing any imbalance in supply and demand for the stock(s) that the specialist is assigned

iii. determining an opening price for each assigned stock every day

IV. serving as an auctioneer for the shares of the assigned stocks

AI and II only

BI, II, and IV only

CI and IV only

DI, II, III, and IV

Show Suggested Answer

Suggested Answer: D

All of the choices listed are duties of the specialist on an exchange floor. The specialist maintains a limit order ''book'' and executes those orders if/when the limit price is reached. The specialist is also charged with maintaining a fair and orderly market in the assigned securities, which means trading on his own account to ensure that the supply and demand of the stock's shares match. Additionally, the specialist is responsible for setting the opening price for the assigned stock each day and for serving as the auctioneer for the shares of the stock.

by Allene at May 05, 2022, 11:17 AM

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Lashunda

3 months ago

I thought they only handled orders, not the opening price stuff.

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Mendy

3 months ago

I’m pretty sure they also act as auctioneers for stocks.

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Louis

3 months ago

Wait, do they really set the opening price every day? That seems off.

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Dolores

4 months ago

Definitely agree with that! They’re crucial for balancing things out.

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Deane

4 months ago

I think specialists do execute limit orders and manage supply/demand.

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Michal

4 months ago

I feel like all four duties might be correct, but I’m hesitant about the opening price part. It’s tricky!

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Caprice

4 months ago

I practiced a similar question where the duties included executing orders and managing imbalances, so I’m leaning towards option B.

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Janessa

4 months ago

I think minimizing supply and demand imbalance is definitely one of their duties, but I can't recall if they actually serve as auctioneers.

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Eura

5 months ago

I remember that specialists do execute limit orders, but I'm not sure about the opening price determination part.

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Vallie

5 months ago

Hmm, this seems straightforward. I'll need to make sure I understand the implications of enabling My Domain before I answer.

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Kayleigh

5 months ago

Hmm, I'm a bit unsure about this one. I know we've covered business rules and workflows in class, but I can't quite remember the specifics of how to make a field dynamically visible. I'll need to review my notes carefully.

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