SIE Exam Question 470: Answer and Explanation

Question: 470

Your brokerage firm acts as a market maker for several high-volume stocks that are quoted on the Nasdaq. What is the firm's consideration for being a market maker?

• A. 5%.
• B. Spread.
• C. Fees.
• D. Commission.

Correct Answer: B

Explanation:

B: Firms that act as market makers in Nasdaq securities are trying to make the spread, which is the difference between the bid and the ask.