- CFA Exams
- CFA Level I Exam
- Study Session 12. Equity Investments (1)
- Reading 36. Market Organization and Structure
- Subject 3. Financial Intermediaries
CFA Practice Question
______ connect buyers to sellers who are present at the same time but in different places.
A. Brokers
B. Dealers
C. Arbitrageurs
Explanation: Arbitrageurs buy from a seller in one market while simultaneously selling to a buyer in another market. Dealers, however, connect buyers to sellers who are present at the same place but at different times.
User Contributed Comments 5
User | Comment |
---|---|
meeravenk | I thought arbitrageur first but when i saw different 'places' instead of different 'markets', i changed my answer to brokers. Hmmm.... |
jjhigdon | I did the same thing as meeravenk. Under this used of the term, a buyer in LA and a seller in NYC are apparently in the same "place". |
jcsk | why is it not brokers? |
tung | brokers normally connect buyers and sellers in one place, not different ones. |
farhan92 | cheeky one this! |