When can a broker consider a deal to be done?
A) if he is confident that the dealer will not back out of the deal
B) if both parties to the deal have established credit lines for each other
C) if one party to the deal acknowledges interest
D) if he receives acknowledgement from both the dealers involved

Question

Quizplus · Accepted Answer

A broker can consider a deal to be done only when he receives acknowledgement from both the dealers involved. This ensures that both parties agree to the terms of the deal and are committed to completing it. Simply being confident that a dealer will not back out is not enough to consider a deal done, and credit lines established between parties may not necessarily indicate a deal has been agreed upon. A acknowledgement from one party is also not sufficient to consider a deal done as both parties need to agree to the terms.

When Can a Broker Consider a Deal to Be Done