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Zorluk: KolayBroker-Dealers, Investment Advisers, and Intermediaries

When a registered broker-dealer fills a customer's buy order by selling securities directly out of its own inventory, in what capacity is the firm acting, and how is its compensation categorized?

  1. The firm is acting as a principal (dealer) and receives a mark-up.Cevap
  2. B
    The firm is acting as an agent (broker) and receives a commission.
  3. C
    The firm is acting as a principal (dealer) and receives a commission.
  4. D
    The firm is acting as an investment adviser and receives an advisory fee.

Cevap

The firm is acting as a principal (dealer) and receives compensation in the form of a mark-up.
When a firm executes transactions using its own inventory, it acts as a principal (dealer) for its own account. On customer buy orders filled from inventory, the firm adjusts the price upward, earning compensation known as a mark-up.

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1
Identify the trade execution context
The broker-dealer is buying or selling securities for/from its own account (inventory).
Trading from proprietary inventory defines principal transaction capacity.
2
Determine the role and compensation model
Principal (dealer) capacity yields a mark-up when selling to a customer or a mark-down when buying from a customer.
Commissions apply strictly to agency transactions, whereas mark-ups/mark-downs apply to principal transactions.

Anahtar Kavram

Broker-Dealer Capacities: Agent (Broker) vs. Principal (Dealer)
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Konular

Broker-Dealers, Investment Advisers, and Intermediaries

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