Which one of the following is a general characteristic of a securities broker?
A)Trades from his or her own inventory
B)Trades only foreign securities
C)Trades listed securities in an auction market
D)Trades electronically from any geographic location
E)Is the principal trader of debt securities

Question

Quizplus · Accepted Answer

A securities broker typically trades listed securities in an auction market, such as the New York Stock Exchange or NASDAQ. They facilitate transactions between buyers and sellers and earn commission fees. Trading from their own inventory (A) would make them a dealer instead of a broker. Trading only foreign securities (B) would make them a foreign securities broker. Trading electronically from any geographic location (D) is a characteristic of online brokers, which are a subset of securities brokers. Being the principal trader of debt securities (E) would make them a bond dealer or bond broker.

Which One of the Following Is a General Characteristic of a Securities