Which One of the Following Statements Is Not True About

question 40

Multiple Choice

Which one of the following statements is not true about brokered markets?

• A)Brokers can guarantee an order because they have an inventory of securities.
• B)Brokers bring buyers and sellers together to earn a fee,called a commission.
• C)Investors have an incentive to hire a broker because they charge a commission that is less than the cost of direct search.
• D)Brokers' extensive contacts provide them with a pool of price information that individual investors could not economically duplicate themselves.

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Definitions:

Attitudes

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Human Mind

The set of cognitive faculties including consciousness, perception, thinking, judging, and memory, that is the essence of an individual's mind.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Dealing

The act of engaging in commercial transactions or negotiations.