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An Important Structural Difference Between Exchanges and the OTC Market

Question 9

Multiple Choice

An important structural difference between exchanges and the OTC market with respect to the activities of dealers is that:


A) On exchanges, there is only one market maker or dealer per stock called the specialist.
B) In the OTC market, there may be many dealers for a stock depending on the trading volume.
C) There is not competition among specialists.
D) a and b only.
E) All of the above.

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