ESSENTIALS OF INVESTMENTS
CHAPTER 3 QUESTIONS WITH
CORRECT ANSWERS 2026-2027
Four types of securities markets - correct answer-1. Direct Search Markets
2. Brokered Markets
3. Dealer Markets
4. Auction Markets
Direct Search Market - correct answer-least organized
buyers and sellers find each other on their own
sporadic participation, low price, non-standard goods
Brokered markets - correct answer-
brokersRdevelop specialized knowledge of the assets in that particular market
brokersRconduct and profit from searches that they offer to buyersRand sellers
dealer markets - correct answer-secondary markets'
form when trading activity of an asset goes up
markets in which traders specializing in particular assets buy and sell for their own accounts.
they get their profits from bid-ask spread.
auction markets - correct answer-most organized of markets
CHAPTER 3 QUESTIONS WITH
CORRECT ANSWERS 2026-2027
Four types of securities markets - correct answer-1. Direct Search Markets
2. Brokered Markets
3. Dealer Markets
4. Auction Markets
Direct Search Market - correct answer-least organized
buyers and sellers find each other on their own
sporadic participation, low price, non-standard goods
Brokered markets - correct answer-
brokersRdevelop specialized knowledge of the assets in that particular market
brokersRconduct and profit from searches that they offer to buyersRand sellers
dealer markets - correct answer-secondary markets'
form when trading activity of an asset goes up
markets in which traders specializing in particular assets buy and sell for their own accounts.
they get their profits from bid-ask spread.
auction markets - correct answer-most organized of markets
