SIE practice questioneasyTrade Execution
Which of the following best describes a broker’s role when acting as an agent in a securities transaction?
- AIssuing securities to the public
- BTrading securities from its own inventory
- CGuaranteeing a minimum price for the client
- DArranging trades for clients and earning a commission✓ Correct answer
Explanation
Why D — Arranging trades for clients and earning a commission
As an agent, a broker arranges trades between buyers and sellers, earning a commission. Trading from inventory is principal. Guaranteeing prices and issuing securities are not agent roles.
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