Which one of the following has the greatest duty to provide liquidity to the financial market?
A)floor broker
B)independent broker
C)dealer
D)designated market maker
E)floor trader

Question

Quizplus · Accepted Answer

A designated market maker (DMM) has the primary responsibility to ensure liquidity in the financial market by buying and selling securities to keep the market running smoothly. They are responsible for maintaining an orderly market and preventing excessive price volatility. Floor brokers, floor traders, and independent brokers are all involved in the buying and selling of securities but do not have the same level of responsibility as DMMs in providing liquidity. Dealers are also involved in the buying and selling of securities but they typically focus on a specific market or product and may not have the same overall responsibility for providing liquidity as DMMs.

Which One of the Following Has the Greatest Duty to Provide