SIE (Securities Industry Essentials) 2025 – 400 Free Practice Questions to Pass the Exam!

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Question: 1 / 400

What is a market maker obligated to do?

Provide financial advice to investors

Buy securities at the lowest market price

Sell securities at the highest market price

Maintain and honor firm quotes during trading hours

Market makers have the role of maintaining liquidity in the market and facilitating trading. They are obligated to fulfill firm quotes, which are the prices at which they are willing to buy or sell securities. This is important for ensuring a fair and orderly market. A market maker is not responsible for providing financial advice to investors, and their main goal is not to buy securities at the lowest market price or sell at the highest market price. While they may buy or sell securities in the market, their main duty is to provide liquidity and maintain firm quotes.

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