Finance · Dealer

How does a market dealer primarily buy and sell securities differently from a broker acting as an agent?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1A dealer is legally barred from holding overnight inventory
2A dealer cannot charge a spread on transactions
3A dealer acts as a principal, trading from their own account✓
4A dealer only executes trades on behalf of institutional clients

Correct answer

A dealer acts as a principal, trading from their own account

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How does a market dealer primarily buy and sell securities differently from a broker acting as an agent?

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