4-46 in Market-Making

question 51

Multiple Choice

4-46 In market-making

• A)principal transactions are two-way transactions on behalf of customers,such as a dealer working for a fee or commission.
• B)principal transactions are when market makers take long or short positions and seek profits on price movements.
• C)market makers take inventory positions to stabilize the market in the securities.
• D)Answers A and C only.
• E)Answers B and C only.

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Definitions:

IPSPs

Short for Inhibitory Postsynaptic Potentials, these are electrical changes in the postsynaptic neuron that make it less likely to generate an action potential, thereby inhibiting the neuron.

Potassium Channels

Protein channels in cell membranes that allow potassium ions to pass in and out of the cell, playing key roles in cell signaling and electrical conductivity.

Sodium Channels

A type of ion channel found in the membranes of cells, specifically permeable to sodium ions, crucial for initiating and conducting electrical signals in neurons.

Action Potentials

Rapid and temporary electrical impulses that travel along neurons, essential for nerve impulse transmission.