Series 63 practice questionmediumBroker-dealer definition—issuers excluded
Which of the following is NOT considered a broker-dealer under the Uniform Securities Act?
- AAn issuer selling its own securities to the public.✓ Correct answer
- BA firm with an office in the state effecting trades for others.
- CA partnership effecting securities transactions for the accounts of others.
- DA corporation that buys and sells securities as an intermediary.
Explanation
Why A — An issuer selling its own securities to the public.
The USA specifically excludes issuers selling their own securities from the broker-dealer definition (USA Sec. 401(c)). Firms effecting trades for others, with an office in the state, are broker-dealers.
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