Which One of the Following Statements Concerning Dealers and Brokers

question 75

Multiple Choice

Which one of the following statements concerning dealers and brokers in the financial markets is correct?

• A)A broker never assumes ownership of the securities being traded.
• B)A dealer pays the ask price when purchasing securities.
• C)A broker earns income in the form of a bid-ask spread.
• D)A dealer in market securities arranges sales between buyers and sellers for a fee.
• E)A broker deals solely in the primary market.

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Definitions:

Profit a Prendre

A right granted to an individual to take resources, such as minerals, fish, or timber, from the land of another.

Dominant Tenement

In property law, the estate that benefits from an easement that burdens a neighboring estate (the servient tenement).

Estate in Land

A legal interest or right in a property, determining the duration and nature of ownership.

Fee Simple

A legal term referring to the most extensive ownership interest in land that one can possess, which is unlimited in duration, inheritable, and not subject to any restrictions.