asked 74.2k views
3 votes
"A floor broker enters the crowd around the Specialist's (DMM's) post to buy 20,000 shares of ABC at the market for a public customer. The Specialist (DMM) tells the trader "20,000 shares of ABC have been stopped at 25." This means that:"

asked
User Culture
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1 Answer

5 votes

Answer: the Specialist/DMM has therefore guaranteed $25 to the trader.

Step-by-step explanation:

A floor broker is simply referred to as an exchange independent member who acts as a broker for members who are being overloaded with orders

A floor broker enters the crowd around the Specialist's (DMM's) post to buy 20,000 shares of ABC at the market for a public customer. The Specialist (DMM) tells the trader "20,000 shares of ABC have been stopped at 25." This means that the Specialist/DMM has therefore guaranteed $25 to the trader

answered
User XxGoliathusxX
by
7.6k points
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