SIE practice questioneasyBroker-Dealers vs. Investment Advisers
A retail investor wants to buy and sell securities on an exchange. Which financial professional is authorized to execute these transactions for a commission?
- AInvestment adviser
- BBroker-dealer✓ Correct answer
- CTransfer agent
- DTrustee
Explanation
Why B — Broker-dealer
Broker-dealers are registered to execute securities transactions for clients and are compensated through commissions. Investment advisers give advice for a fee but do not execute trades. Transfer agents keep ownership records. Trustees manage assets for beneficiaries.
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