Securities Industry Essentials (SIE) Quiz: Differentiate Order Types

What this quiz covers

This quiz focuses on Differentiate Order Types, giving you a quick way to practice the rules, question types, and explanations that matter most for Securities Industry Essentials (SIE).

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

Question 1

1. commission.
2. markup or markdown. (correct answer)
3. custodial fee.
4. advisory fee.

Question 2

1. buy stop order. (correct answer)
2. sell stop order.
3. buy limit order.
4. sell limit order.

Question 3

1. Market-if-touched
2. Good-'til-Canceled
3. Stop-limit (correct answer)
4. All-or-none

Question 4

1. A sell limit order at $28 (correct answer)
2. A sell stop order at $28
3. A buy limit order at $28
4. A buy stop order at $28

Question 5

1. a solicited or unsolicited broker.
2. a discretionary or non-discretionary manager.
3. an agent or a principal. (correct answer)
4. a retail or institutional firm.

Question 6

1. a discretionary order.
2. a non-discretionary order. (correct answer)
3. a principal order.
4. an agency order.

Question 7

1. Principal
2. Underwriter
3. Market Maker
4. Agency (correct answer)

Question 8

1. bullish and wants to buy at a lower price.
2. bearish and has a short position. (correct answer)
3. bearish and wants to sell at a higher price.
4. bullish and owns the stock.

Question 9

1. front running.
2. acting as an agent.
3. backing away. (correct answer)
4. placing a limit order.

Question 10

1. Market order
2. Limit order (correct answer)
3. Stop order
4. Stop-limit order

Question 11

1. markup on the security's price.
2. commission charged for the service. (correct answer)
3. markdown from the security's price.
4. profit from its own inventory.

Question 12

1. Market order (correct answer)
2. Limit order
3. Stop order
4. Good-'til-Canceled (GTC) order

Question 13

1. trustee.
2. agent.
3. principal. (correct answer)
4. custodian.

Question 14

1. The execution price may be unfavorable.
2. The order may not be executed if the market price does not reach the limit price. (correct answer)
3. The commission charged is significantly higher than for a market order.
4. The order will execute immediately regardless of the price.

Question 15

1. agent and bought securities for a customer.
2. agent and sold securities for a customer.
3. principal and sold securities to a customer.
4. principal and bought securities from a customer. (correct answer)

Question 16

1. Day order
2. Market order
3. Fill-or-Kill (FOK) order
4. Good-'til-Canceled (GTC) order (correct answer)

Question 17

1. Execution only after a stop is reached, with a guaranteed stop price
2. Best price guarantee, but execution is not certain
3. Execution only at the customer's limit, with no price variation
4. Best chance of execution, but price may vary from the last quote (correct answer)

Question 18

1. Below the market, to buy on weakness at a lower price
2. At the market, to guarantee an immediate fill at the quote
3. Above the market, to buy if the price rises to the stop (correct answer)
4. Below the market, to trigger only if the price rises first

Question 19

1. bid price. (correct answer)
2. ask price.
3. stop price.
4. limit price.

Question 20

1. unsolicited trade. (correct answer)
2. solicited trade.
3. discretionary trade.
4. principal trade.