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An agent who maintains an inventory from which he or she buys and sells securities is called a......

Asked on 6 Apr 2020

Answer

OC2736346
Answered on 6 Apr 2020

Dealer 

Dealers trade-in assets. They purchase the asset and afterward sell it by including their margin. Dealers are commonly known as market makers since they need to keep up stock of assets. Dealer's business is riskier than the brokers. Since dealers take possession of the asset. They have the market risk (Price risk) as they have to maintain stock of assets i,e the price of assets in possession of dealers may fall in the market.

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