Individuals who use their own stock inventory and capital to buy and sell the stocks they represent are called _________________.

Question

Quizplus · Accepted Answer

Market makers are individuals or firms that use their own stock inventory and capital to buy and sell the stocks they represent. They facilitate trading by creating a market for buyers and sellers to engage in transactions. Brokers, on the other hand, act as intermediaries between buyers and sellers and do not use their own inventory and capital to buy and sell stocks. Investors are individuals or firms that buy and hold stocks for a period to generate returns. Therefore, the best answer is A) Market makers.

Individuals Who Use Their Own Stock Inventory and Capital to Buy