Which of the following statements concerning dealers is false?
A) Dealers usually buy and sell only for themselves.
B) Dealers accept the risks of owning shares of stock.
C) The OTC market is a dealer market.
D) Most debt securities trade in dealer markets.
E) The TSX and NYSE are dealer markets.

Question

Quizplus · Accepted Answer

The TSX (Toronto Stock Exchange) and NYSE (New York Stock Exchange) are primarily auction markets, not dealer markets. In auction markets, buyers and sellers submit bids and offers and trade directly with each other, whereas in dealer markets, dealers buy and sell securities from their own inventories, acting as intermediaries.

Which of the Following Statements Concerning Dealers Is False