Which of the Following Is a Characteristic of a Dealer

question 69

Multiple Choice

Which of the following is a characteristic of a dealer market, rather than auction market, for common stock?

• A)dealer markets are more likely to be centralized
• B)dealer markets operate as primary, not secondary, markets
• C)dealers may not offer all the same price for the same security
• D)dealer markets specialize in trading income stocks

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Definitions:

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders, usually in the form of cash.

Stock Dividend

A dividend payment made to shareholders in the form of additional company shares rather than cash.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested in the business.

Restricted

Restricted typically refers to assets or securities that are not freely tradable or accessible due to regulations or specific conditions.