Types of Quotations
Chapters in this video
- 0:00 Firm quotation as the inter-dealer default
- 1:51 Anti-backing-away rule and exact exam phrasing
- 2:51 Subject quotation and the publication timing trap
- 3:49 Workout quotation versus subject quotation
- 4:23 Nominal quote and SEC identification requirement
- 5:08 Bid wanted and offer wanted in thin markets
- 5:48 Side-by-side binding comparison table
- 6:22 Rapid-fire exam recap
What this video covers
- Why an unmodified quote defaults to firm in inter-dealer quotation systems, and what that binding commitment means for trade execution
- What backing away is, why refusing to honor a firm quote violates the anti-backing-away rule, and the exact exam phrase used to describe the violation
- How a subject quotation differs from a firm quote, and the timing rule for labeling it "subject" at publication
- When a market maker uses a workout quotation for illiquid or infrequently traded securities, and why it is a price range rather than a firm commitment
- What a nominal (informational) quotation is, why it must be explicitly labeled, and the SEC quotation-identification requirement behind the rule
- What bid wanted (BW) and offer wanted (OW) signify, and why they appear in municipal bond and thinly traded markets
- How to read the binding-vs-flexible comparison table so you can eliminate wrong answers on quote-type questions
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 7 course adds adaptive practice questions and spaced-repetition flashcards.
Start on this site: free Series 7 practice questions · Series 7 pass rate