In Market-Making

Multiple Choice

In market-making

A) principal transactions are two-way transactions on behalf of customers, such as a dealer working for a fee or commission.
B) principal transactions are when market makers take long or short positions and seek profits on price movements.
C) market makers take inventory positions to stabilize the market in the securities.
D) principal transactions are two-way transactions on behalf of customers; and market makers take inventory positions to stabilize the market in the securities.
E) principal transactions are when market makers take long or short positions and seek profits on price movements, and market makers take inventory positions to stabilize the market in the securities.