SIE practice questioneasyTypes of Market Participants
A registered representative taking orders and providing investment advice to customers is acting as which of the following?
- AA principal of a broker-dealer
- BAn agent of a broker-dealer✓ Correct answer
- CA transfer agent
- DA custodian
Explanation
Why B — An agent of a broker-dealer
Registered representatives act as agents of broker-dealers, serving clients. Principals supervise representatives, transfer agents handle securities transfer, and custodians safeguard assets, not typically interact with customers directly for investment advice.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Companies & Packaged Products questions
- A mutual fund is most directly regulated by which of the following laws?
- What is the minimum percentage of disinterested directors required by the Investment Company Act of 1940 for an…
- A registered representative recommends a high-risk product to a conservative investor. Which rule is most likely…
- MSRB Rule G-37 restricts municipal bond dealers from engaging in business with issuers following what action?