Dealers:
A)match buy and sell orders on behalf of their clients
B)hold an inventory of securities
C)earn their main income from dividends received on the shares they hold
D)charge a commission on trades performed.
E)All of these.

Question

Quizplus · Accepted Answer

Dealers hold an inventory of securities, which distinguishes them from brokers who match buy and sell orders without holding inventory. Dealers make profits from the spread between the buy and sell prices of securities, not primarily from commissions or dividends.