Market where market makers keep record of stock of financial instruments is classified as_________________?
Correct answer: B. Dealer market
- A. Stock market
- B. Dealer market
- C. Outcry auction system
- D. Face to face communication
Explanation
In a dealer market, dealers or market makers trade from their own inventory of securities and quote buying and selling prices. A stock market is a broader term and does not specifically identify the inventory-based dealing system.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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