To narrow the spread between the bid and the asked price of one of his stocks, a specialist enters a bid to buy for his own account, acting in this transaction as a:

To narrow the spread between the bid and the asked price of one of his stocks, a specialist enters a bid to buy for his own account, acting in this transaction as a:




A) dealer (or principal).

B) broker/dealer.

C) broker (or agent).

D) floor broker.



Answer: A) dealer (or principal).


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