When an investment bank stands willing to buy securities from participants who want to sell and to sell securities to participants who want to buy, it is:
A) underwriting.
B) market making.
C) principal investing.
D) proprietary trading.
E) organizing a market.

Question

Quizplus · Accepted Answer

Market making refers to the activity of investment banks buying securities from those who want to sell and selling securities to those who want to buy. This allows for liquidity in the market and helps facilitate trading.

When an Investment Bank Stands Willing to Buy Securities from Participants