Trading, Accounts & Prohibited ActsQuestion 212 of 398
On the NYSE, which participant is assigned to a particular stock to maintain a fair and orderly market and provide liquidity when natural buyers or sellers are absent?
a.A transfer agent
b.A designated market maker (specialist)
c.A registrar
d.A syndicate manager
Explanation
A designated market maker (historically called a specialist) is responsible for maintaining a fair and orderly market in assigned securities, quoting bids and offers and committing capital when needed. Transfer agents and registrars perform recordkeeping functions, not trading.
Law Reference: Securities Exchange Act of 1934Practice all 398 questions free — no signup required.
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