Question

18.

A securities dealer is a(n):

A.

intermediary who arranges trades between a buyer and a seller.

B.

trader who buys and sells from his or her inventory.

C.

firm which charges a commission for arranging a transaction.

D.

person who buys securities for his or her own account on an exchange floor.

E.

trader who transacts business on behalf of a securities issuer.

Answer 1

A security dealers include individuals or firms that specialize in security market transactions by

(1) assisting firms in issuing new securities through the underwriting and market placement of new securities issues,

(2) trading in new or outstanding securities on their own account

(3) Dealers buy and sell securities for their own account.

(4) basically this is the service which is provided by the dealer and hence they charged commission which is the some percentage of trade as agreed by the parties.

(5) he arrange trade between buyer and seller because he act as an intermediary who have the knowledge of requirement of both the parties and helps in matching the requirement of both the parties and execute the trade.