Securities Quotes

What this video covers

• The five quote types on the commitment spectrum: firm, subject, workout, nominal, and bid wanted or offer wanted
• Why a firm quote is a binding obligation that must be honored for the stated size, and what constitutes the violation of backing away
• How a subject quote gives the dealer wiggle room to change the price before execution, and why the magic words "subject to confirmation" mean no violation occurred
• When workout quotes apply: thinly traded securities and large block trades where pricing is approximate, not exact
• Why nominal quotes must be clearly labeled as such, and how an unlabeled nominal quote violates the bona-fide-publication rule
• The anti-backing-away rule's coverage of both exchange-listed and over-the-counter (OTC) securities, plus FINRA's tracking of violations
• How to use the commitment-spectrum framework to eliminate wrong answers on complex paragraph-style exam questions