Specialists on the New York Stock Exchange traditionally did all of the following except:
a. Act as dealers for their own accounts.
b. Execute limit orders.
c. Help provide liquidity to the marketplace.
d. Act as odd-lot dealers.
The correct answer is option‘d’.
New York Stock Exchange is an American Stock Exchange which is the world’s largest stock exchange by market capitalization
Answer d: Act as odd-lot dealers; because odd-lot dealers are specialists who trade in stocks w\whose price is less than $100 per piece.
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $50.
a. If a market buy order for 100 shares comes in, at what price will it be filled?
b. At what price would the next market buy order be filled?
c. If you were a security dealer, would you want to increase or decrease your inventory of this stock?
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