Trading on option exchanges involves a person, known as the _____, who facilitates the trading of financial assets by maintaining an inventory in particular securities
A) specialist
B) floor trader
C) floor broker
D) market maker or dealer

Question

Quizplus · Accepted Answer

A market maker or dealer is responsible for maintaining an inventory of securities and facilitating the trading of financial assets. They do this by providing ask and bid prices for particular securities, and they earn a profit from the difference between the prices they offer. A specialist, floor trader, and floor broker all play different roles in the trading process, but none have the primary responsibility of maintaining an inventory of securities like a market maker or dealer.

Trading on Option Exchanges Involves a Person, Known as the _____