MSRB rules require a pre-set minimum number of quotes when pricing a municipal issue.

• A. Three
• B. None
• C. Five
• D. Seven

Answer: (B)

Pricing a municipal issue must reflect fair market value and be based on reasonable diligence. There isn’t a preset minimum number of quotes mandated by MSRB rules. The dealer is expected to use a fair and reasonable process to determine price, considering current market information, quotes from multiple dealers when available, recent trades, and other relevant data. The emphasis is on arriving at a fair price through a reasonable method, not meeting a specific quote-count requirement. Because no fixed quote count is required, the correct answer is that there is no minimum.