Question

The specific location on the floor of an exchange where a particular security is traded is called a:

Multiple Choice:
A) box office.
B) post.
C) trading booth.
D) seat.
E) Figure 6

Answer 1

A 'post' is the designated area on a stock exchange floor where specific securities are traded through the matching of buyers and sellers by a specialist.

Step-by-step explanation:

The specific location on the floor of an exchange where a particular security is traded is known as a post. Unlike the other options like a box office, trading booth, seat, or the unrelated 'Figure 6', a post is the designated spot on the trading floor of a stock exchange, such as the New York Stock Exchange (NYSE), where traders and brokers can buy and sell specific stocks or securities.

Each post is manned by a specialist, who matches buyers and sellers, manages orders, and oversees the auction process for the securities assigned to that post. The open outcry method of trading, where traders shout and use hand signals to communicate, is often associated with these posts. This method relies on the physical presence of traders and allows for the efficient matching of trades.