Which One of the Following Statements Related to Securities Dealers

question 3

Multiple Choice

Which one of the following statements related to securities dealers is correct?

• A)Dealers match buyers with sellers.
• B)Dealers buy and sell from their own inventory.
• C)Dealers operate on a physical trading floor.
• D)Dealers operate exclusively in auction markets.
• E)Dealers are limited to trading nonlisted stocks.

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Definitions:

Unilateral Contract

A promise made by one party in exchange for the performance of a task or action by another party.

Past Consideration

A benefit already provided or an action already performed, which cannot legally constitute consideration for a current contract.

Consideration

A value that is exchanged between parties in a contract, making the agreement legally binding.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party, if the latter has reasonably relied on that promise to their detriment.