Dealers trade from their own inventory

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Which of the following is (are) true?

Dealers trade from their own inventory.

Brokers earns a profit on the bid-ask spread.

Market participants that match buyers and sellers of assets are referred to as dealers.

Brokers earn a commission or fee for services provided.

If the bid-ask spread is larger, then dealers earn a higher profit per transaction.

Market participants that facilitate transactions by connecting buyers of assets with sellers of the same assets are referred to as brokers.

Reference no: EM131543626

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