Which of the following is TRUE of a dealer market?
A)The dealer buys and sells assets out of his own inventory.
B)The dealer acts as a broker,lining up the owners of assets with the purchasers of assets.
C)The dealer acts as an auctioneer of securities and takes a percentage of the sale as compensation.
D)None of the above is true of a dealer market.

Question

Quizplus · Accepted Answer

In a dealer market, the dealer buys and sells assets out of his own inventory. This is different from a broker market where the broker acts as an intermediary between buyers and sellers without taking ownership of the assets. Option B refers to a broker market and Option C refers to an auction market. Option D is not correct as A is true.

Which of the Following Is TRUE of a Dealer Market