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Do a little prep work before the exam. Know your opponent's weaknesses. You don't want to go into a game of "smashing heads" empty-headed.

Quotes

Firm Ones

When quotes work out a lot and eat light, they get firm. Like Olivia sings, "Let's get fiscal, fiscal…" (Sorry.)

A firm quote is the price at which a market maker will buy 100 shares at that moment of the security in question. If the market maker delivers a quote "firm", it means that they will buy at least 100 shares at their firm quote price. There's no negotiation here.

After a firm quote is given, it is legal for the buyer to ask for a better price—counteroffer—but if the buyer s...

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