An agent who matches security buyers and sellers, but does not hold an inventory of securities, is called a:

Question

Quizplus · Accepted Answer

A broker is an agent who matches security buyers and sellers but does not hold an inventory of securities. Brokers act as intermediaries between buyers and sellers and earn a commission on the transaction. Banks hold an inventory of securities and act as both dealers and brokers. Hedge funds are investment vehicles that pool funds from accredited investors and use complex investment strategies to generate high returns. Therefore, the correct answer is (D) broker.

An Agent Who Matches Security Buyers and Sellers, but Does