A Specialist/DMM in ABC stock on the NYSE is approached at the same time by a floor broker who wishes to buy ABC stock at the market and another floor broker who wishes to sell ABC stock at the market.
The Specialist/DMM buys the stock from the floor broker who wants to sell; and then immediately sells that stock for $.01 more to the floor broker who wants to buy.
(a) This is an example of ____________.

Respuesta :

Answer:

The correct answer is B. trading ahead .

Explanation:

In this case, the use of a situation is evident to be able to make profits, although minimal, profitable for the specialist. What is sought with this operation is to offer guarantees as buyer and seller of the profit of the shares and in some way "motivate" their sale. As the seller is a certified person, the buyer will feel confident and will acquire the required security.