Which of the Following Is Not True of Over-The-Counter Markets

question 90

Multiple Choice

Which of the following is not true of over-the-counter markets?

• A) Traders are linked by computer.
• B) Dealers buy and sell only for their customers.
• C) Trading does not take place in one physical location.
• D) Traders are willing to buy and sell stocks and bonds at posted prices.

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Definitions:

Hierarchy of Authority

A structured order of positions within an organization, where each level has specific powers and responsibilities over the levels below.

Formal Documentation

Official, written documents that record agreements, processes, or conditions to provide evidence or facilitate standardization.

Delegating Authority

The act of transferring decision-making power and responsibility from one individual to another, typically from a higher to a lower level in an organization.

Negotiable Instruments

Financial instruments that are transferable by endorsement or delivery, allowing the holder to take possession of the funds, such as checks or promissory notes.