Final answer:
Investment dealers act as agents in the secondary markets by facilitating the buying and selling of securities on behalf of investors.
Step-by-step explanation:
Investment dealers act as agents in the secondary markets by buying and selling securities on behalf of investors. They facilitate the trading of securities between buyers and sellers, helping to create liquidity in the market.
For example, when an investor wants to sell their shares of a company, they can approach an investment dealer who will find a buyer for these shares. The investment dealer acts as an intermediary, matching buyers with sellers and executing the transaction.
This role as an agent allows investment dealers to provide liquidity and ensure a functioning secondary market where investors can easily buy and sell securities.