The difference between a broker and a dealer is

Question

Quizplus · Accepted Answer

Brokers facilitate transactions between buyers and sellers, but do not hold inventory themselves. Dealers are market participants who buy and sell from their own inventory, standing ready to make a trade at any time. While brokers may transact in stocks and bonds, and currency may be bought and sold through dealers, this is not the defining difference between the two roles. Therefore, choice B is the best answer.

The Difference Between a Broker and a Dealer Is