The type of market in which there is direct interaction between buyers and sellers is a(n)
A) brokered market.
B) auction market.
C) dealer market.
D) primary market.

Question

Quizplus · Accepted Answer

An auction market is a type of market in which buyers and sellers interact directly by submitting bids and offers for securities. The market price is determined by the highest bid and lowest offer that meet, resulting in immediate execution of the trade. In contrast, brokered and dealer markets involve intermediaries who facilitate trades and typically charge fees or commissions. The primary market is where new securities are issued, while the secondary market involves the trading of existing securities.

The Type of Market in Which There Is Direct Interaction