Finra Series-6 Exam - Topic 4 Question 116 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 116
Topic #: 4

The primary difference between dealers and brokers is that:

Adealers operate exclusively in the primary market whereas brokers operate only in the secondary market.

Bdealers operate only in the bond market, while brokers conduct trades in stocks, bonds and options.

Cdealers are market makers, who buy and sell out of their own inventory of securities, while brokers are matchmakers, who match buyers with sellers.

DBoth Choices B and C describe differences between dealers and brokers.

Show Suggested Answer

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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Sharita

14 days 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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