Series 63 practice questioneasyExclusions from broker-dealer
Which of the following is NOT considered a broker-dealer under the USA?
- AA bank executing securities trades for its trust clients.✓ Correct answer
- BAn out-of-state firm with a branch office in the state.
- CA partnership effecting securities transactions for others.
- DA local investment adviser who receives commissions for securities trades.
Explanation
Why A — A bank executing securities trades for its trust clients.
Banks are specifically excluded from the definition of broker-dealer under the USA (USA Sec. 401(c)). Firms operating in the state or effecting trades for others generally are broker-dealers.
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