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Zorluk: KolayBroker-Dealers, Investment Advisers, and Intermediaries

Pair each type of financial intermediary with the specific primary service or capacity in which it operates.

  • Broker-Dealer acting as AgentExecutes trades on behalf of customer orders and charges a commission
  • Investment AdviserProvides ongoing investment advice under a fiduciary duty for a fee
  • CustodianHolds client securities and funds in safe storage to protect against theft or loss
  • Transfer AgentMaintains shareholder record books and processes stock transfers and dividend payouts

Cevap

Broker-Dealer acting as Agent matches with executing client trades for a commission; Investment Adviser matches with providing ongoing investment advice under a fiduciary duty for a fee; Custodian matches with holding client assets in safe storage; and Transfer Agent matches with maintaining shareholder record books and processing distributions.
Each intermediary is matched to its defining statutory function: broker-dealers in an agency capacity match with executing trades for commission; investment advisers match with fee-based advice governed by fiduciary standards; custodians match with secure asset safekeeping; and transfer agents match with managing corporate shareholder registries and dividend payments.

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1
Identify the trading capacity of a broker-dealer executing customer orders for commission.
Broker-dealers operating as brokers (agents) act on behalf of buyers and sellers, earning commissions.
Agency capacity involves middleman trade execution rather than trading from firm inventory.
2
Distinguish the compensation model and duty of an Investment Adviser from a Broker-Dealer.
Investment Advisers charge management or advisory fees and owe a fiduciary duty to put clients' interests first.
Advisers provide ongoing advice and management under the Investment Advisers Act of 1940.
3
Determine which intermediary provides asset safekeeping.
Custodians hold client funds and physical/book-entry securities securely.
Custodial entities minimize operational risk and insolvency exposure for investors.
4
Identify the firm responsible for corporate record-keeping and dividend disbursement.
Transfer agents keep track of registered owners of securities and handle dividend payouts.
Issuers hire transfer agents to maintain owner registries and re-register shares during sales.

Anahtar Kavram

Core Roles and Capacities of Financial Intermediaries
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Konular

Broker-Dealers, Investment Advisers, and Intermediaries

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