What is one function of brokers in a quote-driven market?

In a quote-driven market, one primary function of brokers is executing trades on behalf of clients. Brokers act as intermediaries between buyers and sellers, facilitating transactions by ensuring that orders from clients are carried out efficiently and accurately. They utilize the quotes provided by market makers to find the best possible prices for their clients when buying or selling securities.

By executing trades, brokers help to ensure liquidity in the market, allowing clients to enter and exit positions as needed. This role is essential, as it directly impacts the efficiency of trading and the overall market dynamics. Brokers often also provide additional services such as research and market analysis, but their fundamental role in a quote-driven market is centered around the execution of client orders.

In contrast, making markets for securities typically involves market makers, who provide liquidity by being willing to buy and sell at specified prices. Speculation on market movements is generally the domain of traders or investors rather than brokers, who primarily serve their clients' interests. Providing price fluctuations is a byproduct of market activity rather than a function of brokers themselves.