Which of the following statements is true about broker markets? Group of answer choices Brokers bring buyers and sellers together to earn a margin, called a bid-ask spread. Brokers’ extensive contacts provide them with a pool of price information that individual investors could easily duplicate themselves, and hence not really value adding. Brokers cannot guarantee an order because they have no inventory of securities. Investors have no incentive to hire a broker because what they charge as a commission is more than the cost of direct search.
Which of the following statements is true about broker markets? Group of answer choices Brokers bring buyers and sellers together to earn a margin, called a bid-ask spread. Brokers’ extensive contacts provide them with a pool of price information that individual investors could easily duplicate themselves, and hence not really value adding. Brokers cannot guarantee an order because they have no inventory of securities. Investors have no incentive to hire a broker because what they charge as a commission is more than the cost of direct search.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Which of the following statements is true about broker markets?
Group of answer choices
Brokers bring buyers and sellers together to earn a margin, called a bid-ask spread.
Brokers’ extensive contacts provide them with a pool of price information that individual investors could easily duplicate themselves, and hence not really value adding.
Brokers cannot guarantee an order because they have no inventory of securities.
Investors have no incentive to hire a broker because what they charge as a commission is more than the cost of direct search.
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