A market participant who buys and sells securities from inventory is called a
A)broker.
B)trader.
C)principal.
D)capitalist.
E)dealer.

Question

Quizplus · Accepted Answer

A participant who buys and sells securities from inventory is called a dealer. Brokers simply facilitate trades between buyers and sellers, while traders may buy and sell securities on behalf of clients or for their own account. The term capitalist is more broad and refers to a person who invests in or owns multiple businesses. Finally, while principals can be market participants, this term typically refers to individuals or firms who have a direct financial stake in a transaction.

A Market Participant Who Buys and Sells Securities from Inventory