Designated Market Makers (DMMs) Are Required To

question 89

Multiple Choice

Designated market makers (DMMs) are required to:

• A) maintain a bid-ask spread no greater than 1 cent per share.
• B) maintain a fair and orderly market.
• C) buy when most others are selling, and vice versa.
• D) sell excess inventory to maintain a strictly neutral position.

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Definitions:

License

A revocable right to temporarily use another’s property.

Property

Assets or possessions, either tangible or intangible, owned by individuals or entities.

Restrictive Covenant

A promise to use or not to use one’s land in particular ways.

Homeowners' Association

An organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and its residents.