SIE practice questionmediumNon-Member Access
Which statement is true about firms that are not SRO members?
- AThey may not legally act as broker-dealers✓ Correct answer
- BThey can operate without restriction
- CThey are automatically regulated by FINRA
- DThey must join the SEC
Explanation
Why A — They may not legally act as broker-dealers
Only registered SRO members may legally act as broker-dealers in the U.S.
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