When a securities firm acts as a(n) ____, it makes a market in specific securities by maintaining an inventory of those securities.

Question

Quizplus · Accepted Answer

A securities firm that acts as a dealer buys and sells securities from its own inventory, while a broker buys and sells securities on behalf of clients. An adviser provides investment advice to clients but does not necessarily buy or sell securities.

When a Securities Firm Acts as A(n) ____, It Makes