Rule 6 of 7 in this unit1.2.1

1.2.1 Types of Markets

SIE outline 1.2.1

Rule 2269's Own Phrase

Written notice, at or before completion, for a member's interest in a primary OR secondary distribution. NOT a rule about ordinary market trades.

The method for this kind of question
  1. Count to four: no fifth market type

Now answer

1 question on this screen, from this outline item's own pool, so some will test a rule you met earlier in the unit. Pick an answer, say how sure you are, then reveal. Being sure and wrong is the most useful thing that can happen here, and the coach treats it that way.

Question 1Exam level

A broker-dealer buys a block of NYSE-listed stock over the counter from a pension fund, away from the exchange. Which market is this?

How sure are you?

Correct: C. A listed security, traded over the counter, with a broker-dealer involved, is exactly the third market.
A. The issuer is not a party to this trade; nothing here is primary.
B. Names the venue correctly but misses that the security's exchange listing is what makes this specifically the third market, not plain secondary trading.
D. A broker-dealer is present here; the fourth market requires no dealer at all.

Unit: SIE outline 1.2.1

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