Match each financial intermediary entity or operational capacity with its defining market function and primary form of compensation under U.S. securities regulations.
- Broker acting in an Agency CapacityMatches buyers and sellers in secondary market transactions without taking an inventory position; compensated via a commission disclosed on the trade confirmation.
- Dealer acting in a Principal CapacityExecutes customer orders from its own inventory position as a market maker; compensated via a markup or markdown.
- Investment Adviser (RIA)Operates under a fiduciary standard providing ongoing investment management; compensated primarily by asset-based fees (AUM percentage) or flat advisory fees.
- Transfer AgentMaintains official shareholder registration records, issues and cancels physical/book-entry share certificates, and disburses dividend payments on behalf of the issuer.
Cevap
Broker acting in an Agency Capacity pairs with matching buyers/sellers for a commission. Dealer acting in a Principal Capacity pairs with trading from inventory for a markup/markdown. Investment Adviser (RIA) pairs with fiduciary advisory services for asset-based fees. Transfer Agent pairs with maintaining corporate shareholder records and issuing certificates.
Each intermediary is correctly paired according to its regulatory role and compensation structure: brokers in agency capacity act as middlemen charging commissions; dealers in principal capacity trade from inventory charging markups/markdowns; investment advisers provide fiduciary advice for AUM fees; and transfer agents handle shareholder recordkeeping for issuers.
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Anahtar Kavram
Market Intermediaries and Execution Capacities