Which of the Following Is a Characteristic of a Dealer

question 30

Multiple Choice

Which of the following is a characteristic of a dealer market, rather than auction market, for common stock?

• A)Dealer markets are more likely to be centralized
• B)Dealer markets operate as primary, not secondary, markets
• C)Dealers may not all offer the same price for the same security
• D)Dealer markets specialize in trading income stocks

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Definitions:

Detectable Difference

The minimum change in a stimulus that can be correctly identified as different from a reference stimulus a certain proportion of the time.

Ernst Weber

A pioneering psychologist best known for his work in the sensory perception field, including Weber's Law regarding the just-noticeable difference in stimuli.

Sensation

The process through which the senses pick up visual, auditory, and other sensory stimuli and transmit them to the brain.

Perception

The method through which people arrange and understand their sensory perceptions to assign significance to the world around them.