Series 79 practice questioneasyBroker-Dealer Registration
Which of the following activities requires an institution to register as a broker-dealer under the Securities Exchange Act of 1934?
- AProviding trust services for clients without executing securities transactions
- BActing solely as a municipal advisor without effecting securities transactions
- CRegularly buying and selling securities for the accounts of others as part of a business✓ Correct answer
- DExtending commercial loans to corporate clients without handling securities
Explanation
Why C — Regularly buying and selling securities for the accounts of others as part of a business
Regularly buying and selling securities for others as part of a business constitutes broker-dealer activity and requires SEC registration. The trap is thinking that providing related services without transaction execution is enough to trigger registration.
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