Asked by itzel torres on Jun 01, 2024
Verified
An individual who buys and sells stocks for his/her own account is a:
A) Dealer.
B) Agent.
C) Broker.
D) Auctioneer.
E) OTC broker.
Dealer
An individual or firm in the financial markets that buys and sells securities for their own account, rather than on behalf of clients.
Broker
An individual or firm that acts as an intermediary between buyers and sellers, usually charging a commission for their services.
Agent
An individual or entity authorized to act on behalf of another (the principal) in dealings with third parties.
- Differentiate between dealers, brokers, and other participants in the financial markets.
Verified Answer
TZ
Tommy ZhengJun 07, 2024
Final Answer :
A
Explanation :
A dealer is an individual or firm in the securities business who buys and sells stocks and other securities for their own account, rather than for a client's account. This distinguishes them from brokers, who facilitate transactions on behalf of their clients.
Learning Objectives
- Differentiate between dealers, brokers, and other participants in the financial markets.