What criteria define a market-maker?
A) He will only quote to brokers
B) He will quote choice prices on request
C) He will only quote two-way prices to brokers
D) He will quote two-way prices for marketable amounts on request

Question

Quizplus · Accepted Answer

Market makers are typically obligated to provide two-way prices for marketable amounts on request. This means that they must be willing to both buy and sell a security at a specific price, and for a significant enough quantity to be considered "marketable." This function helps to maintain liquidity in the market by ensuring that there are always buyers and sellers available for investors who want to buy or sell securities. The other choices (A, B, and C) are not accurate descriptions of a market maker's responsibilities.

What Criteria Define a Market-Maker