Designated market makers (DMMs) are required to:
A) maintain a bid-ask spread no greater than 1 cent per share.
B) maintain a fair and orderly market.
C) buy when most others are selling, and vice versa.
D) sell excess inventory to maintain a strictly neutral position.

Question

Quizplus · Accepted Answer

Designated market makers (DMMs) are responsible for maintaining a fair and orderly market by providing liquidity and reducing volatility, not necessarily maintaining a specific bid-ask spread or taking strictly neutral positions.

Designated Market Makers (DMMs) Are Required To