Which of the Following Is not a Function of the Specialist

question 91

Multiple Choice

Which of the following is not a function of the specialist?

• A) Assists the Federal Reserve in controlling the money supply
• B) Acts as a broker who handles the limit orders or special orders placed with member brokers
• C) Buys and sells securities in order to stabilize the market
• D) Acts as a dealer in assigned stocks to maintain a fair and orderly market
• E) All of the above are functions of a specialist

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Definitions:

Capital Structure

Capital structure describes the mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which collectively finance the company's operations and growth.

Flotation Costs

Expenses incurred by a company in issuing new securities, including fees for underwriting, legal counsel, and registration.

Pre-tax Cost

The expense associated with an investment or action before the effects of taxes are taken into account.

Pay Interest

The act of compensating a lender for the use of borrowed money, usually determined as a percentage of the principal loan amount.