Dealers ________

question 13

Multiple Choice

Dealers ________.

• A) operate as agents, not principals.
• B) continually provide bids and offer quotes to buy for or sell from borrowed inventories and profit from the spread between their bid and offer quotes.
• C) compete with each other in their bids and offers.
• D) have a perspective that views the "best" market as the highest bid and lowest offer.

---

Definitions:

Economic Entity

A unit such as a company or organization that performs economic activities and is capable of possessing assets, incurring liabilities, and conducting business transactions.

Direct Ownership Interest

A situation where an individual or entity directly owns shares or stakes in a company, allowing for direct control or influence over the company.

Ownership Interest

A share or stake denoting possession or control in a company, allowing the holder certain rights and privileges.

Indirect Non-Controlling Interest

A non-controlling interest that a parent company has in a subsidiary through another subsidiary or subsidiaries, complicating the calculation of ownership percentages.