A dealer acts as an auctioneer in all market structures, thereby providing order and fairness in the operations of the market.

Question

Quizplus · Accepted Answer

While a dealer does provide liquidity and facilitate trades in the market, they do not act as an auctioneer in all market structures. In many markets, trades are executed through electronic matching systems rather than a dealer or auctioneer. Additionally, some markets use different mechanisms for determining prices, such as algorithms or continuous trading.

A Dealer Acts as an Auctioneer in All Market Structures