SIE practice questioneasyTrade Execution
A firm that acts as a dealer in a transaction is acting as:
- ATransfer agent
- BAgent
- CCustodian
- DPrincipal✓ Correct answer
Explanation
Why D — Principal
Dealers act as principal, trading from their own account. Agents act on behalf of clients. Custodians safeguard assets, and transfer agents handle recordkeeping.
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