A firm that holds an inventory of a security and serves as an intermediary between buyers and sellers of the security is known as a(n)

Question

Quizplus · Accepted Answer

A market maker acts as a middleman between buyers and sellers of a security by holding an inventory of the security and standing ready to buy or sell the security at all times. This helps provide liquidity to the market and facilitates trading. The other options do not necessarily involve holding an inventory of securities or serving as an intermediary for buyers and sellers.

A Firm That Holds an Inventory of a Security and Serves