There are many differences between broker markets and dealer markets. These differences include such things as membership, location, regulation, and several other characteristics
Discuss at least five key differences between these two markets.
What will be an ideal response?
Answer: BROKER MARKETS—listing requirements, central physical location, members own seats, transactions occur through an auction process, specialists maintain fair and orderly markets, limited securities traded, limited number of securities traded, brokers charge commission to execute trades; largest in terms of dollar volume.
DEALER MARKETS—unlisted securities, most bonds traded here, primary and secondary market, decentralized locations, NASD membership required to trade; dealers make profit from bid/ask spread; largest in terms of number of companies.
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Fill in the blanks with correct word