Question

Question 6 (10 points) Which of the following describe designated market makers? Select all that apply. maintain a fair and orderly market receive an advance look at the limit order book make markets at all times, even when trading at a loss participate in the market during times of volatility Question 7 (10 points) Investment banks assume no risk when working on a firm's IPO. True False

Answer 1

Answer: Maintain a fair and orderly market

Explanation:

A designated market maker is a market producer answerable for keeping up reasonable and methodical markets for a doled out arrangement of recorded stocks. Once known as authorities, the designated market maker is the official market creator for a lot of tickers and, so as to keep up liquidity in these appointed stocks, will take the opposite side of exchanges when purchasing and selling lopsided characteristics happen. The designated market maker likewise fills in as a state of contact on the exchanging floor for the recorded organization and furnishes the organization with data, such as the general economic situations, the mind-set of merchants, and who is exchanging the stock.

• Deal with a physical sale alongside a computerized sell-off, which incorporates electronic statements from different DMMs and market members
• Meet NYSE showcase depth and coherence standards
• Energize support and improve showcase quality by keeping cites in-accordance with floor dealer cites

Answer: True

Explanation:

The initial public offering is in the same class as putting resources into any stock. Thus, you don't put aimlessly in any stock right. You either follows an essential or specialized way to deal with decide present moment and long haul drifts before putting away your well-deserved cash. In any case, indeed, scarcely any IPOs glancing worthwhile as far as returns they are giving within 1 fourteen days, for example from issue to posting.

The most significant angle to glance in an IPO is to search at the membership cost. In the event that it is as of now exaggerated, at that point no reason for contributing. The subsequent thing is to discover the explanation behind opening up to the world, by what means will the organization utilize this cash got through offers, is it for business development, to put resources into different divisions, to get apparatus and stuff.