A specialist for IBM would derive most of his income from A. the salary the exchange provides him. B. his activities as a dealer. C. his activities as a broker. D. knowledge gained from sole access to the limit-order book. I bombed that one… in my face
broker?
B
i would say D (specialist is market maker so…)
You’re right. I change my answer lol
Should be B.
dreary can u dvp please
A - a specialist is a market maker not a broker / dealer. Specialist are only specific to the NYSE and are paid by the exchange. A market maker for a nasdaq listed stock would receive income from activities as a broker / dealer…
a dealer is most definitely a market maker
bluecollar i’ve picked the same wrong answer … hint: the question says IBM stock
if you are hinting at where IBM is listed, it’s listed on the NYSE, however I doubt one would be required to know that…I don’t know…it’s a weird question…I always thought specialist were employed by NYSE…plus they are dying breed anyways…
Specialists are definitely NOT employed by the exchange. They are employed by NYSE Specialist firms.
b?
yes, like wjg said, they are employed by NYSE Specialist firms, and they do trade for their accounts whenever necessary as per NYSE and Amex rules. They do not definitely get paid by the exchange…in fact theyir firms pay for their seats. They are not brokers because they don’t deal with investors orders, etc. D is a hush hush fact.