TRADING QUESTION 1

A. A Nasdaq Level I quote shows: (a) the best bid and offer price from NASD member firms; (b) the best bid and offer price from market makers and ECNs and the largest depth; (c) all of the offers to buy and sell from both market makers and ECNs and their respective depths; (d) the specialists order book.

B. The Nasdaq Level II display shows: (a) the best bid and oer price from NASD member firms; (b) the best bid and offer price from market makers and ECNs; (c) all of the offers to buy and sell from both market makers and ECNs and their respective depths; (d) the specialists order book.

C. The biggest risk from placing a market order is: (a) slow execution; (b) a partial fill; (c) receiving a price away from the inside market; (d) higher commissions;