Specialists on stock exchanges perform the following functions
A)Act as dealers in their own accounts.
B)Analyze the securities in which they specialize.
C)Provide liquidity to the market.
D)A and B.
E)A and C.

Question

Quizplus · Accepted Answer

Specialists on stock exchanges act as market makers, providing liquidity to the market by buying and selling securities. They do this by maintaining an inventory of particular securities on the exchange and offering to buy or sell those securities at all times, even in volatile markets. They do not act as dealers in their own accounts, but they do analyze the securities in which they specialize in order to make informed trading decisions. Therefore, both options A and B are incorrect, while options C and E are partially correct. Option E is the most accurate, as it includes the correct functions of specialists on stock exchanges.

Specialists on Stock Exchanges Perform the Following Functions