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Zorluk: KolayMarket Participants and Investor Classifications

When a securities firm executes a transaction on behalf of a customer by matching the customer's order with a counterparty in the market and charging a fee for this service, in what capacity is the firm operating?

  1. As an agent (broker)Cevap
  2. B
    As a principal (dealer)
  3. C
    As a clearing depository
  4. D
    As a self-regulatory organization

Cevap

When a securities firm matches buyers and sellers in the market on behalf of a customer and charges a commission, it is acting in an agency (broker) capacity.
When a firm acts in an agency capacity (as a broker), it acts as a middleman facilitating transactions between buyers and sellers without taking positions into its own inventory, charging a commission for the execution.

Adım Adım Çözüm

1
Identify the key operational characteristics described in the scenario.
The firm matches customer trade orders with counterparties in the marketplace and receives commission revenue.
Determining how the trade is executed and how compensation is earned distinguishes agency capacity from principal capacity.
2
Map the execution characteristics to participant capacities.
Matching orders as a middleman without using inventory and charging a commission corresponds strictly to acting as an agent (broker).
Firms acting as principals trade out of inventory for markups/markdowns, whereas agents intermediate between third parties for commissions.

Anahtar Kavram

Broker-dealer capacity distinctions: Agent (broker) vs. Principal (dealer)
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Konular

Market Participants and Investor Classifications

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