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The Primary Difference Between the Specialist System and Marketmakers System

Question 23

Multiple Choice

The primary difference between the specialist system and marketmakers system of maintaining a fair and orderly market for a security is:


A) the specialist usually trades multiple securities; the marketmaker, just one.
B) the specialist is located at a specific location; the marketmaker is always involved with multiple market places.
C) the specialist is one person; marketmakers include more than one person.
D) the specialist works at an exchange; the marketmakers do not.

Correct Answer:

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