Which one of the following statements is generally correct?
A) Private placements must be registered with the SEC.
B) All secondary markets are auction markets.
C) Dealer markets have a physical trading floor.
D) Auction markets match buy and sell orders.
E) Dealers arrange trades but never own the securities traded.

Question

Quizplus · Accepted Answer

Auction markets match buy and sell orders, while dealer markets involve intermediaries who arrange trades between buyers and sellers but do not necessarily match buy and sell orders. Private placements do not necessarily have to be registered with the SEC, and not all secondary markets are auction markets. Additionally, dealer markets may or may not have a physical trading floor, as trades can occur electronically.

Which One of the Following Statements Is Generally Correct