ARA-R01 Practice Questions

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NEW QUESTION: 1
Which of the following statements about specialists is false?
A. Specialists are market makers in assigned stocks and, as such, can profit from these investments.
B. Specialists are required to maintain a fair and orderly market in their assigned stocks, meaning that they must buy if there is an excess of sell orders and sell out of their own portfolios if there is an excess of buy orders.
C. Specialists are employees of the exchange on which they oversee trades.
D. In addition to acting as market makers, specialists also act as agents and execute limit orders placed by commission brokers for their clients if the specified price is reached.
Answer: C
Explanation:
Explanation/Reference:
Explanation: The statement that specialists are employees of the exchange on which they oversee trades is false. Specialists are separate firms that are members of the exchange. Specialists are market makers in the stocks that are assigned them by the exchange and can earn profits (or losses) on these investments, just like any other market maker. They are required to maintain a fair and orderly market in their assigned stocks, however, which means they sometimes must trade against the market. They also maintain a central limit order "book" in their assigned stocks.

NEW QUESTION: 2
Ann, a new employee, received an email from an unknown source indicating she needed to click on the provided link to update her company's profile. Once Ann clicked the link, a command prompt appeared with the following output:

Which of the following types of malware was executed?
A. Ransomware
B. Adware
C. Virus
D. Spyware
Answer: C

NEW QUESTION: 3

A. Option B
B. Option C
C. Option A
D. Option D
Answer: A