What is the primary role of a designated market maker (DMM)?
A)Provide a two-sided market
B)Act as a floor broker
C)Function as a supplementary liquidity provider
D)Act as a one-sided trader
E)Process only electronic trades

Question

Quizplus · Accepted Answer

The primary role of a designated market maker (DMM) is to provide a two-sided market, meaning they are committed to buying and selling a particular stock at publicly quoted prices to ensure liquidity and fair pricing in the market.

What Is the Primary Role of a Designated Market Maker