An agent who maintains an inventory from which he or she buys and sells securities is called a:
A) broker.
B) trader.
C) capitalist.
D) principal.
E) dealer.

Question

Quizplus · Accepted Answer

A dealer is the type of agent who maintains an inventory from which he or she buys and sells securities for their own account. This is different from a broker who acts as an intermediary between buyers and sellers, and a trader who executes trades on behalf of a client or firm. The term capitalist refers to someone who has capital and invests it in various assets, including securities. The term principal can refer to either the main party in a transaction or the owner of a business or firm. However, in the context of securities trading, the term principal usually refers to a financial institution that buys and sells securities for its own account.

An Agent Who Maintains an Inventory from Which He or She