The specialist firms operating in the stock exchange act as both brokers and dealers, buying and selling for other brokers and for themselves when there is any imbalance between supply and demand.

Question

Quizplus · Accepted Answer

Specialist firms on the stock exchange serve a dual role: they act as brokers by executing orders on behalf of other brokers' clients, and as dealers by trading for their own accounts, especially to maintain liquidity and manage imbalances between supply and demand.

The Specialist Firms Operating in the Stock Exchange Act as Both