Question

Which one of the following is a false statement regarding NYSE specialists? On a stock exchange most buy or sell orders are executed via an electronic system rather than through specialists. Specialists cannot trade for their own accounts. Specialists maintain limit order books, which contain the outstanding unexecuted limit orders. Specialists stand ready to trade at narrower bid-ask spreads in cases where the spread has become too wide.

Answer 1

Answer:

Specialists cannot trade for their own accounts.

Explanation:

The NYSE operates with a system of individual securities "specialists" who work on the NYSE trading floor and specialize in facilitating trades of specific stocks. A specialist is simply a type of market maker