The Difference Between a Broker and a Dealer Is

question 38

Multiple Choice

The difference between a broker and a dealer is

• A)dealers sell drugs; brokers sell houses.
• B)brokers bring together buyers and sellers, but carry no inventory; dealers stand ready to buy and sell from their inventory.
• C)brokers transact in stocks and bonds; currency is bought and sold through dealers.
• D)none of the above

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Definitions:

Criminal Sanctions

Punishments or penalties imposed for violations of criminal laws, intended to deter illegal activities and punish offenders.

Punitive Fines

Financial penalties imposed by a court, not to compensate the plaintiff, but to punish the defendant and deter future misconduct.

Ultramares Doctrine

A legal principle that limits the liability of auditors to third parties, based on the notion that auditors should only be held liable for fraud or gross negligence.

Recent Years

Refers to the period encompassing the last few years leading up to the current date, typically indicating a focus on contemporary or near-past events or trends.