The Member That Serves as the Market Maker in a Stock

question 57

Multiple Choice

The member that serves as the market maker in a stock on the floor of the NYSE is called the:

• A) floor broker.
• B) exchange governor.
• C) registered trader.
• D) designated market maker.

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Definitions:

Herfindahl Index

A measure of market concentration that is calculated by squaring the market share of each firm competing in a market and then summing the resulting numbers.

Economic Concentration

The degree to which a small number of firms occupy a large proportion of the market in a particular industry.

Market Shares

The portion of a market controlled by a particular company or product.

Horizontal Merger

A business consolidation that occurs between firms that operate in the same industry.