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Davis Frequently Trades on the NASDAQ Exchange

Question 113

Multiple Choice

Davis frequently trades on the NASDAQ exchange. He has made a commitment to constantly buy and sell the stocks of Ossani & Gautier, an automobile manufacturing company that is listed on the exchange. He competes for customer order flow by quoting the bid price and the ask price for a number of shares. The information given in the scenario indicates that Davis is a(n) _____.


A) market maker
B) accredited investor
C) floor broker
D) proprietary trader

Correct Answer:

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