The Party Who Serves as a Dealer for a Few

question 106

Multiple Choice

The party who serves as a dealer for a few securities on an exchange floor and is obligated to maintain an orderly market for those securities is called a:

• A)floor trader.
• B)designated market maker.
• C)floor broker.
• D)member.
• E)house broker.

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, and negotiable instruments.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.

Holder in Due Course

A legal term describing a person who has acquired a negotiable instrument in good faith and has the right to collect on it, free from many defenses.

Due Diligence

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or a financial transaction with another party.