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Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questioneasyAgent Definition

In a remedial practice session, the fact pattern is framed this way. Assume all filings and notices are evaluated under the USA. Under the Uniform Securities Act, an 'agent' is defined as:

  1. AAny firm registered with the SEC to sell securities
  2. BA corporation that acts as an underwriter for new issues
  3. CAn individual who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities✓ Correct answer
  4. DAny person who provides financial planning services for a fee
Explanation

Why CAn individual who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities

Under USA Section 401(b), an agent is any individual, other than a broker-dealer, who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities. The term applies only to natural persons (individuals), not to firms or entities. State-law analysis leads to the same conclusion despite the alternate scenario.

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