What Is the Primary Role of a Designated Market Maker

question 55

Multiple Choice

What is the primary role of a designated market maker (DMM) ?

• A)Provide a two-sided market
• B)Act as a floor broker
• C)Function as a supplementary liquidity provider
• D)Act as a one-sided trader
• E)Process only electronic trades

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, granting shareholders voting rights and a share in the company's profits via dividends.

Real Asset

Physical or tangible assets that have value, such as real estate, commodities, and natural resources.

Finance

The study and management of money, investments, and other financial instruments. It involves the processes of creating, managing, and investing capital.

Asset

An economic resource that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.