Market Makers
A market maker is required to do all of the following EXCEPT:
Market makers must continuously quote bid and ask prices, honor those quotes up to stated sizes, and maintain two-sided markets (willing to buy and sell). They are NOT required to guarantee profits - investors can still
Complete Analysis & Legal Rationale
Market makers must continuously quote bid and ask prices, honor those quotes up to stated sizes, and maintain two-sided markets (willing to buy and sell). They are NOT required to guarantee profits - investors can still lose money.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.