SIE (Securities Industry Essentials) Practice Exam

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A member of a stock exchange responsible for providing liquidity in a security by being willing to buy and sell at all times is known as:

a market maker
a broker-dealer
an exchange officer
a security analyst

The correct answer is: a market maker

A market maker is a member of a stock exchange who is responsible for creating liquidity in a security by being willing to buy and sell at all times. This allows for smoother trading and higher liquidity in the market. A broker-dealer is a financial professional who executes trades for clients. An exchange officer is an employee of the stock exchange who enforces rules and regulations. A security analyst evaluates the financial performance of a company and makes investment recommendations, but is not responsible for providing liquidity. Therefore, the other options are incorrect as they do not accurately describe the role of a market maker on a stock exchange.