Question

Which of the following is true of the DMMs on the NYSE?

Select one:

a. They work for the company whose stock they trade.

b. They work for the FDNY

c. They work from themselves.

d. They work for the exchange.

Answer 1

Option d is correct

The Designated Market Makers (DMMs) on the New York Stock Exchange (NYSE) work for the exchange. DMMs provide liquidity to the stocks.

Option a is incorrect because DMMs just provide liquidity to the stock they trade, they do not work the company of the stock

Option b is incorrect because DMMs do not work for FDNY

Option c is incorrect because DMMs are the members of the exchange (NYSE) and they work for the exchange, not for themselves