Market making requires that _____.

Question

Quizplus · Accepted Answer

Market making involves an investment bank acting as a dealer in securities, providing liquidity to the market by buying and selling securities at quoted prices. The investment bank may also use its market-making role to reduce arbitraging opportunities, but this is not the primary purpose of market making. Accurately valuing securities is important for any investment activity, but it is not specific to market making. Similarly, auditing public firms is a distinct function that is not related to market making.

Market Making Requires That _____