Which one of the following statements related to securities dealers is correct?
A)Dealers match buyers with sellers.
B)Dealers buy and sell from their own inventory.
C)Dealers operate on a physical trading floor.
D)Dealers operate exclusively in auction markets.
E)Dealers are limited to trading nonlisted stocks.

Question

Quizplus · Accepted Answer

Securities dealers buy and sell securities from their own inventory, unlike brokers who simply match buyers and sellers without taking ownership of the securities being traded. Dealers can operate either on a physical trading floor or electronically. Therefore, option B is correct. The other options are incorrect as dealers are not limited to trading nonlisted stocks, they do not exclusively operate in auction markets, and they may or may not match buyers with sellers on a physical trading floor.

Which One of the Following Statements Related to Securities Dealers