Let's enjoy a fun question on types of orders that customers can place either online or over the phone with their trusted registered representative (you). Ready? Let's take a stab at it, anyway:
A customer of a broker-dealer places a buy-stop @45 limit 45 order on XYZ. The following trades in XYZ are reported to the consolidated tape:
44.50, 44.95, 45.10, 45.05, 44.95, 45.00
What is the most likely result?
A. the order has not yet been executed
B. the order has not yet been activated
C. the customer was filled at $44.95
D. the customer was filled at $45.05
EXPLANATION: many candidates absolutely loathe questions like this one, almost as much as they hate options questions. Oh well. If you're going to be entering orders for customers, you'll need to know this stuff, which is why it's very likely fodder for the Series 7. Remember that a buy-stop @45 is activated when the stock trades at $45 or higher. So, this order was activated when it traded at $45.10. That eliminates Choice B. Can the order be filled at $45.05? No, the customer won't pay any more than $45. That eliminates Choice D. Can the order be filled at $44.95? Yes, so the answer is . . . c.