Secondary Market
What type of market is Nasdaq considered?
NYSE = auction market (DMM). Nasdaq = dealer/negotiated market (multiple market makers).
Complete Analysis & Legal Rationale
Nasdaq is a dealer (negotiated) market where multiple market makers compete to trade securities. Each market maker posts their own bid-ask quotes. The NYSE, in contrast, is an auction market with a single Designated Market Maker (DMM) per stock.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Secondary-market / antifraud framework including Section 10(b) (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.