TRUE/FALSE 1. A major function of organized securities markets is to facilitate the transfers of securities among investors. 2. A Â“round lotÂ” is the general unit for trading in a security. 3. The purchase of 53 shares of IBM is an odd lot. 4. If a stock is quoted 20?20.50, an investor can buy the stock for 20.50. 5. If a stock is quoted 12?13, an investor can sell the stock for 13. 6. The spread between the bid and ask prices should be viewed as one of the costs of investing. 7. Market makers guarantee to buy and sell at least one round lot at the prices they quote. 8. The level of securities prices is set by market makers. 9. The New York Stock Exchange is an example of a secondary market. 10. Publicly?owned stock that is not listed on an exchange is traded in the over?the?counter markets such as the Nasdaq stock market. 11. Bid and ask price quotations for over?the?counter stocks are available through the NYSE. 12. Stockbrokers set bid and ask prices. 13. Investors who are â€œbearishâ€ purchase securities. 14. A short sale is a sale that occurs quickly after the stock is purchased. 15. Once a stock has been sold, the investor receives a confirmation specifying the amount to be remitted (i.e., paid). 16. Securities must be paid for by the settlement date. 17. The margin requirement is set by the SEC. 18. The margin requirement sets the maximum cash investment the individual investor must make.