Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Finra Exam Series-6 Topic 10 Question 98 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 98
Topic #: 10
[All Series-6 Questions]

The primary difference between dealers and brokers is that:

Show Suggested Answer Hide Answer
Suggested Answer: A

Of the selections, only 12b-1 fees and management fees are included in the expense ratio of the fund. Brokerage costs that the fund incurs when it buys and sells securities are not included (which is why a fund's turnover ratio is important to consider.) Redemption fees are paid by the shareholder to the fund, so it would not be included in a fund's expense ratio since it is not an expense of the fund.


by Danica at Mar 08, 2025, 11:28 AM

Limited Time Offer

25%

Off

Get Premium Series-6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Sheron
2 months ago
Well, if you're a dealer, you're basically the one-stop-shop for all your clients' trading needs. Brokers, on the other hand, are like the matchmakers of the financial world - they just bring the parties together and let them do the dance.
upvoted 0 times
...
Francesco
2 months ago
C is the way to go. Dealers are the ones who take the risk and provide the liquidity, while brokers are just the middlemen.
upvoted 0 times
Laurel
28 days ago
Exactly, dealers provide liquidity in the market while brokers facilitate trades.
upvoted 0 times
...
Leonardo
1 months ago
So, dealers are like market makers while brokers are like matchmakers.
upvoted 0 times
...
Kizzy
1 months ago
That's true, brokers just connect buyers and sellers without taking on any risk.
upvoted 0 times
...
Adelle
1 months ago
I agree, dealers are the ones who take on the risk by holding inventory.
upvoted 0 times
...
...
Barrie
3 months ago
Hmm, I was leaning towards B, but C makes more sense. Dealers are the ones who hold the inventory and make the market.
upvoted 0 times
Mozell
1 months ago
So, it seems like the primary difference is that dealers hold inventory and make the market, while brokers just facilitate trades.
upvoted 0 times
...
Madonna
1 months ago
I agree, dealers are the ones who buy and sell from their own inventory, while brokers just connect buyers and sellers.
upvoted 0 times
...
Leslee
2 months ago
I think C is the correct answer. Dealers are market makers who hold inventory, while brokers match buyers and sellers.
upvoted 0 times
...
...
Kasandra
3 months ago
I think D is the correct answer. Both the differences in B and C are valid between dealers and brokers.
upvoted 0 times
Chu
2 months ago
Yes, D is the most comprehensive choice that describes the distinctions between dealers and brokers.
upvoted 0 times
...
Shala
3 months ago
I agree, D seems to cover all the differences between dealers and brokers.
upvoted 0 times
...
...
Deonna
3 months ago
Hmm, that makes sense too. I see where you're coming from.
upvoted 0 times
...
Adelaide
3 months ago
Definitely C, dealers are the ones who buy and sell from their own inventory, while brokers just match buyers and sellers.
upvoted 0 times
Cathrine
2 months ago
Yes, that's correct. Dealers take on more risk by holding inventory, while brokers do not.
upvoted 0 times
...
Stefan
2 months ago
So, the primary difference is that dealers trade from their own inventory, while brokers do not.
upvoted 0 times
...
Shaun
2 months ago
Brokers just connect buyers and sellers without holding inventory.
upvoted 0 times
...
Gussie
2 months ago
I agree, dealers are market makers who trade from their own inventory.
upvoted 0 times
...
...
Josefa
3 months ago
I disagree, I believe the answer is D. Both B and C describe the differences.
upvoted 0 times
...
Deonna
4 months ago
I think the answer is C. Dealers are market makers and brokers are matchmakers.
upvoted 0 times
...

Save Cancel