Trading & MarketsPregunta 97 de 125
A dealer (principal) transaction differs from an agency (broker) transaction because in a principal trade the firm:
a.Buys or sells from its own inventory and may charge a markup or markdown
b.Only matches buyers and sellers for a commission
c.Cannot profit from the trade
d.Acts solely as a fiduciary adviser
Explicación
Acting as a dealer or principal, a firm trades from its own account and earns compensation through a markup (on sales to customers) or markdown (on purchases from customers). Acting as a broker or agent, the firm arranges the trade between parties and charges a commission instead.
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