Final answer:
A 5. dealer is the agent who maintains an inventory to buy and sell securities, providing liquidity and facilitating trading in the financial markets.
Step-by-step explanation:
An agent who maintains an inventory from which he or she buys and sells securities is called a 5. dealer. Dealers play a vital role in the financial markets as they facilitate trading by acting as market makers.
Unlike brokers, who facilitate transactions between buyers and sellers, dealers maintain an inventory of securities to provide liquidity to the market. They are key participants in ensuring that financial assets can be traded to those who demand it. In this way, they support the financial system, where individual firms raise capital by selling shares of stock and issuing bonds, and investors seek returns on investments.
By providing this service, dealers help businesses obtain the funding they need through various means, including selling stock, issuing bonds, or getting loans from banks.