Series 63 practice questioneasyBroker-Dealer Definition — Exclusions
Which of the following entities is EXCLUDED from the definition of broker-dealer under the Uniform Securities Act?
- AA firm that underwrites municipal bonds
- BAn agent representing a broker-dealer
- CA discount brokerage firm
- DA bank or savings institution✓ Correct answer
Explanation
Why D — A bank or savings institution
Under USA Section 401(c), banks, savings institutions, and trust companies are excluded from the definition of broker-dealer when acting in their regular capacity. Agents are excluded because they are defined separately as individuals, not firms. Underwriters and discount brokerages are generally included in the broker-dealer definition.
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