Market Makers

question 32

Multiple Choice

Market makers

• A)can execute stock option transactions for their customers.
• B)can trade options for their own account.
• C)are subject to the risk of losses from their positions in options.
• D)benefit from the spread.
• E)all of the above

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume.

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to production activities.

Fixed Selling Cost

Expenses that do not change with the level of goods or services sold, such as salaries of sales personnel and rent of the sales space.

EBITDA

An acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization, indicating a company's financial performance.