Which of the Following Is True of Securities Brokers

question 23

Multiple Choice

Which of the following is true of securities brokers?

• A) They earn a profit by selling securities for higher prices than they paid to purchase them.
• B) They collect premiums from policyholders.
• C) They act as agents for investors who want to buy or sell financial securities.
• D) They issue new securities to raise financial capital.

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Definitions:

High Price

The characteristic of goods or services being offered at a cost considered above the average or expected market value.

Nash Equilibrium

A concept in game theory where no participant can gain by unilaterally changing their strategy if the strategies of others remain unchanged.

Advertising Strategy

The plan and tactics a business uses to communicate with its market, promote its products or services, and attract customers.

Prisoners Dilemma

A situation modeled in game theory in which two individuals acting in their own self-interest do not produce the optimal outcome for either party.