Examkin

Soru

Zorluk: KolayTypes of Markets and Trading Venues

When a securities firm fills a customer's order to sell stock by purchasing the shares directly into its own proprietary account, in what capacity is the firm acting?

  1. As a principal acting as a dealerCevap
  2. B
    As an agent acting as a broker
  3. C
    As an underwriter in the primary market
  4. D
    As a depository organization performing clearing functions

Cevap

As a principal acting as a dealer
A financial firm acts as a principal (dealer) whenever it executes a transaction directly against its own inventory account.

Adım Adım Çözüm

1
Analyze the role of the firm in the transaction
The firm is buying shares into its own inventory
Trading for one's own account defines a principal (dealer) transaction.

Anahtar Kavram

Broker (Agent) vs. Dealer (Principal) Capacity
Bu soruyu puanla

Konular

Types of Markets and Trading Venues

Bu konudan daha fazla soru