Which term describes financial intermediaries that facilitate trading in a quote-driven market?

The term that describes financial intermediaries that facilitate trading in a quote-driven market is brokers and dealers. In such a market, brokers serve as intermediaries who connect buyers and sellers, while dealers function as market makers who buy and sell securities for their own accounts. This dual function is essential in ensuring liquidity and efficient price discovery within the market.

Brokers work on behalf of clients to execute trades, generally charging a commission for their services. Dealers, on the other hand, buy and sell securities from their own inventory, providing immediate availability of assets to facilitate transactions. Together, brokers and dealers help ensure that there is a functioning market, allowing for the smooth execution of trades by providing quotes and facilitating negotiations between buyers and sellers.

The other terms mentioned have different roles in the financial markets. Stock analysts primarily focus on evaluating and making recommendations about stock investments. Investors and clients are typically the end users who engage in buying and selling activities but do not directly facilitate trades between parties. Risk managers deal with the assessment and mitigation of financial risks within an organization, which does not directly involve the trading process itself. Therefore, brokers and dealers are the correct terms for the intermediaries in a quote-driven market.