A market maker
A) brings together buyers and sellers of a financial asset.
B) ensures all information is available to buyers and sellers.
C) disclose to the seller the intentions of the buyer.
D) disclose to the buyer the intentions of the seller.

Question

Quizplus · Accepted Answer

A market maker is a financial intermediary that brings together buyers and sellers of a particular financial asset. The market maker earns a profit by buying securities at the bid price and selling them at the ask price. Market makers make trading in a particular security more efficient by ensuring that there is a continuous supply of buyers and sellers. They do not necessarily need to disclose the intentions of either party.

A Market Maker