Alice works for Citadel, and her day-to-day job involves deciding and updating bid and ask prices...

Alice works for Citadel, and her day-to-day job involves deciding and updating bid and ask prices for a particular stock which is trading in NYSE, based on her own petition in that stock. That makes Alice a:

1. Principle

2.Floor Broker

3.Supplemental Liquidity Provider

4.Capitalist

5.Market maker.

Expert Solution

Answer-

The correct answer is Option 5. Market maker

Market makers are dealers or traders whose role is to increase the liquidity of stocks and provide more liquid and efficient trading. Market makers facilitate competitive prices by deciding and updating bid and ask prices which assists investors in getting the best price.

Option 1 is incorrect as Principal acts when there is imbalance in markets by buying and selling from his/her own inventory to stabilize the market.

Option 2 is incorrect as Floor Broker A floor broker is an employee in a securities or brokerage firm who executes orders on the floor for a stock

Option 3 is incorrect as Supplemental Liquidity Providers (SLPs) are market participants who create high volume on exchanges to increase liquidity in the markets by using high speed computers and algorithms. SLPs are generally found in high liquid stocks with average daily trading volume of more than 1 million shares.

Option 4 is incorrect. A capitalist is a person who believes in capitalism which is a system of privately-owned businesses and profiting from businesses.

Therefore Alice is a Market maker in Citadel.

jeff jeffy answered 2 years ago

1) Discuss how the foreign exchange market works with dealers and the "bid" and "ask" spread....

1) Discuss how the foreign exchange market works with dealers and the "bid" and "ask" spread. 2) Discuss the difference between a Forward Currency Contract and a Futures Currency Contract, and how either can reduce the risk of international trade. 3) Discuss the difference among and purpose of the Money Market, Credit Market, and Bond Market.

Suppose you receive the following quotes from a dealer. The bid and ask prices for USD...

Suppose you receive the following quotes from a dealer. The bid and ask prices for USD are MYR4.15 and MYR4.18, respectively. The same dealer also quotes the bid and ask prices for GBP to be at MYR5.10 and MYR5.15. Given the following quotes, calculate the USD cost of obtaining GBP10,000. A. $8,058 B. $8,196 C. $12,200 D. $12,410 Suppose you get the following exchange rate quotes: MYR4.4365/USD, MYR3.34/AUD, and USD0.74/AUD. Determine the triangular arbitrage profit that is possible if you...

A weightlifter works out at the gym each day. Part of her routine is to lie...

A weightlifter works out at the gym each day. Part of her routine is to lie on her back and lift a 41 kg barbell straight up from chest height to full arm extension, a distance of 0.55 m . 1. How much work does the weightlifter do to lift the barbell one time? 2. If the weightlifter does 25 repetitions a day, what total energy does she expend on lifting, assuming a typical efficiency for energy use by the...

Julie works in accounts payable. Her job is to prepare the voucher package and submit the...

Julie works in accounts payable. Her job is to prepare the voucher package and submit the completed voucher to the treasurer's office for payment. When the voucher is paid by the Treasurer's department it is returned to Julie (without the check) for filing. The company receives invoices from Mona's Office Supply. When Julie receives the voucher package back from the Treasurer, Julie scans the invoice from Mona's Office Supply and changes the address so that a duplicate payment is sent...

Jane works as a word processor for a large insurance company. Her job, which she detests,...

Jane works as a word processor for a large insurance company. Her job, which she detests, involves inputting hundreds of numbers into a computer. She has gone to her family physician because she feels a constant tingling in her fingers and a sharp pain in her fingers, wrist, and forearm but only at certain times. Her doctor is not a neurological specialist but can see nothing obviously wrong with Jane’s hands or wrists. Jane is depressed and anxious about this...

Congratulations! You have just graduated from your University. Your first day on your new job involves...

Congratulations! You have just graduated from your University. Your first day on your new job involves a lot of paperwork including your decision to participate in the company 401K plan. First, should you participate? Second, describe the benefits of diversification if any including adding international stocks to your investment portfolio? You must include a full explanation to support your answer.

Describe the ethical dilemma Bonnie is facing in her first day on the job. Describe the essential accounting issue at stake in her dilemma.

Describe the ethical dilemma Bonnie is facing in her first day on the job. Describe the essential accounting issue at stake in her dilemma. How has the overall environment of the organization played a role in creating this dilemma? Knowing Bonnie’s past working relationship with the CFO (Ed) and her direct report to Bill, what would you prescribe as next steps for Bonnie? How might Bill’s intimidating personality influence Bonnie? Use the ethical theory you think would be most helpful...

Question