Friday, March 1, 2024
A market maker and an options trader are similar in that each of them is also considered which of the following?
A dealer. Since both the market maker and the options trader buy and sell for their own account, they are considered principals or dealers. In reality, the answer is given to you. Since broker and agent act in the same capacity, they are self-eliminating. You cannot use one of these and not the other. An investment banker is really an underwriter. Now be careful -- do not confuse an options trader with the OBO, the order book official who keeps the orders. Options traders trade for their own accounts and they are in the crowd around the OBO. [Module 1, Regulatory Entities & Market Participants, Sections 4.6 & 5.3]
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