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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:

Show Suggested Answer Hide 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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Vincent
2 days ago
I think C is the best choice. It really captures the roles.
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Odelia
7 days ago
Brokers just connect buyers and sellers, right? That's how I see it!
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Rusty
12 days ago
Wait, are dealers really only in the bond market? That seems off.
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Dannette
17 days ago
D makes the most sense to me. Both B and C are true!
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Virgilio
23 days ago
I thought brokers could also hold inventory sometimes?
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Stefania
28 days ago
C is spot on! Dealers are definitely market makers.
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Dianne
1 month ago
Choice D makes the most sense to me, both B and C are true!
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Antione
1 month ago
I thought brokers could also be market makers sometimes?
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Antione
1 month ago
Wait, are dealers really only in the bond market? That seems off.
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An
2 months ago
Totally agree, C is spot on!
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Jerlene
2 months ago
Dealers are market makers, brokers just match buyers and sellers.
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Elina
2 months 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
2 months 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
2 months 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
4 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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