Specialist firms are regulated by the SEC, to prevent fraud or the exploitation of the unique position that specialists have in market trades.

Question

Quizplus · Accepted Answer

Specialist firms, which are responsible for maintaining fair and orderly markets for specific stocks, are regulated by the SEC to ensure that they do not engage in fraudulent or exploitative behaviors that could harm investors. This regulation helps to maintain the integrity of the market and protect investors from potential abuses.

Specialist Firms Are Regulated by the SEC, to Prevent Fraud