In a securities market, what is the role of a broker?

Prepare for the UCF FIN2100 Midterm 2 Exam. Study flashcards and multiple choice questions with hints and explanations for better understanding. Equip yourself for success!

A broker plays a crucial role in the securities market by facilitating transactions between buyers and sellers. This involves acting as an intermediary, helping to match orders from those looking to buy securities with those looking to sell. Brokers are knowledgeable about market conditions and help ensure that trades are executed efficiently, often providing a platform and tools for investors to make their transactions.

The other options, while related to the broader financial industry, do not accurately describe the primary function of a broker. Issuing bonds pertains more to the role of underwriters or the issuing entities rather than brokers. Managing investor funds is typically the function of asset managers or investment advisors, who actively oversee portfolios on behalf of clients. Providing investment advice is a service offered by financial advisors and may, in some cases, be provided by brokers, but it is not their defining role within the securities market. Hence, the correct answer reflects the core responsibility of a broker as a facilitator of trade in the marketplace.

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