General Securities Sales Supervisor (Series10) Practice Exam

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Study for the General Securities Sales Supervisor (Series10) exam. Prepare with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

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When can a corporation execute a purchase order for its own stock?

At prices higher than market
During regular trading hours only
At prices not exceeding the last reported sale price
Anytime without restriction

The correct answer is: At prices not exceeding the last reported sale price

A corporation can execute a purchase order for its own stock at prices not exceeding the last reported sale price to maintain fair market conditions and prevent market manipulation. This practice is in line with regulations that aim to protect investors and ensure that companies do not artificially influence the price of their own stock. By limiting repurchases to the last reported sale price, a corporation helps to foster transparency and fairness in trading. Moreover, repurchases at excessive prices or without restrictions could lead to an unfair advantage or manipulation of the stock's market price, which is why this limitation exists. Therefore, the approach encapsulated in this correct option aligns with regulatory standards and the principles of fair trading in the securities market.