Question

In ________ markets, participants post bid and ask prices at which they are willing to trade, but orders are not automatically executed by computer. ____________ execute trades for people other than themselves, and in _______________ markets a computer matches orders with an existing limit order book and executes the trades automatically

Answer 1

Answer: Dealer; Brokers; electronic

Explanation: A dealer market is a financial market used to trade securities such as STOCKS,BONDS and other marketable securities,in this market,the dealers post the prices which they are willing to buy or sell but the orders are not automatically executed by the system.

Broker is an agent who facilitates trade execution rather than the people doing by themselves. Brokers are third parties.

Electronic markets are markets where computer matches orders and effectively execute the trade.

Answer 2

Answer:

d) dealer; Brokers; electronic

Explanation:

In dealer markets, participants post bid and ask prices at which they are willing to trade, but orders are not automatically executed by computer.

Brokers execute trades for people other than themselves, and in electronic markets a computer matches orders with an existing limit order book and executes the trades automatically