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Finra Series-6 Exam - Topic 4 Question 116 Discussion

The primary difference between dealers and brokers is that:
C) dealers are market makers, who buy and sell out of their own inventory of securities, while brokers are matchmakers, who match buyers with sellers.
A) dealers operate exclusively in the primary market whereas brokers operate only in the secondary market.
B) dealers operate only in the bond market, while brokers conduct trades in stocks, bonds and options.
D) Both Choices B and C describe differences between dealers and brokers.

Finra Series-6 Exam - Topic 4 Question 116 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 116
Topic #: 4
[All Series-6 Questions]

The primary difference between dealers and brokers is that:

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Suggested Answer: C

The primary difference between dealers and brokers is that dealers are market makers, who buy and sell out of their own inventory of securities, while brokers are matchmakers, who match buyers with sellers. Both dealers and brokers engage in primary and secondary market transactions, and both conduct trades in stocks, bonds, and options.


by Rueben at May 15, 2026, 02:19 PM

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Jerlene
11 hours ago
Dealers are market makers, brokers just match buyers and sellers.
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Elina
6 days ago
I recall studying that dealers are more involved in making markets, so C sounds familiar. But I can't fully rule out D either since it mentions both B and C.
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Royce
11 days ago
I thought brokers only worked in the secondary market, but I'm confused about the primary market part in A. That doesn't seem right to me.
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Ruthann
16 days ago
I'm not entirely sure, but I feel like both B and C could be correct. I remember a practice question that mentioned market makers, which makes me lean towards D.
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Sharita
2 months ago
I think I remember that dealers actually hold inventory, while brokers just connect buyers and sellers. So, maybe C is the right answer?
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