SIE practice questionmediumNasdaq Structure
Which of the following is TRUE about the Nasdaq market?
- AIt operates as an electronic dealer market with multiple market makers competing for order flow✓ Correct answer
- BIt does not require companies to file reports with the SEC
- CIt is a physical exchange located on Wall Street
- DIt has lower listing standards than the OTC Pink Market
Explanation
Why A — It operates as an electronic dealer market with multiple market makers competing for order flow
Nasdaq is an electronic dealer market where multiple market makers compete to provide the best prices for listed securities. Unlike the NYSE, Nasdaq has no physical trading floor — all trading is electronic. Nasdaq has significant listing standards (though different from the NYSE's), and all Nasdaq-listed companies must file regular reports with the SEC. The OTC Pink Market has the lowest standards of any U.S. marketplace.
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