Which of the following persons are excluded from the definition of a broker-dealer?
“Broker-dealer” does not include (1) an agent, (2) an issuer, (3) a bank, savings institution, or trust company, (4) a person who has no place of business in this state if (A) he or she effects transactions in this state exclusively with or through (i) the issuers of the securities involved in the transactions, (ii) ...
The Uniform Securities Act (USA) explicitly names three persons that are consistently excluded from the definition of a broker-dealer: Agents. Issuers. Banks, savings institutions, and trust companies.
Under the Uniform Securities Act, all of the following are specifically excluded from the definition of a broker-dealer EXCEPT. investment advisers. Banks, issuers, agents, and certain out-of-state broker-dealers are excluded from the definition of broker-dealer.
Issuers generally are not "brokers" because they sell securities for their own accounts and not for the accounts of others. Moreover, issuers generally are not "dealers" because they do not buy and sell their securities for their own accounts as part of a regular business.
What Is an Associated Person? In futures trading, the term "associated person" refers to particular people within the employ of a broker or dealer that perform the role of sales or supervision of sales. Clerical and administrative employees are not included.
A broker-dealer (B-D) is a person or firm in the business of buying and selling securities for its own account or on behalf of its customers.
Under Section 3(a)(18) of the Exchange Act, an associated person of a broker or dealer or a person associated with a broker or dealer is: Any broker or dealer employee, except those employees who perform solely ministerial or clerical functions.
The Uniform Securities Act defines an investment adviser as anyone who provides advice related to any security for compensation. Excluded from the definition are banks, savings institutions, and trust companies (but not insurance companies).
(This is not a complete definition. See Section 25004). Generally speaking, broker-dealers are persons that act as securities dealers or brokers or perform both functions. A broker is an individual or firm who acts as an intermediary between a buyer and seller, usually charging a commission.
I, II, III, IV. The best answer is A. An "agent" is an individual (not a "person" as defined by the Uniform Securities Act) who represents a broker-dealer or issuer in effecting securities transactions.
Is JP Morgan a broker-dealer?
J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA, and SIPC.
Morgan Stanley is registered as both a broker-dealer and as an investment adviser under federal and state securities laws, and we provide services in both capacities.
We are registered with the U.S. Securities and Exchange Commission as a broker-dealer and an investment adviser, offering both brokerage and investment advisory services to our clients.
The definition of associated person is broad and can embrace a wide range of business relationships: • an employee who is acting in the capacity of employee • an agent (other than an employee) who is acting in the capacity of an agent, and • any other person who performs services for or on behalf of the firm who is ...
Commonly referred to as brokers or stockbrokers, registered financial professionals are technically known as registered representatives.
Technically, a broker is in the business of buying and selling securities on behalf of its clients, and a dealer buys and sells securities for its own account. A broker-dealer does both. Broker-dealers may appeal to investors who want to be more proactive in managing their own portfolios.
The number of brokerage firms has declined 7% over the past five years. At the end of 2022, there were 3,378 broker-dealers serving the industry. Small broker-dealers—with between 1 to 150 registered reps—dominate the landscape with 89% of all firms falling into that category.
A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates the sale of a property. Brokers can furnish market research and market data.
| Stock Brokerage Firm | Assets under management* |
|---|---|
| Vanguard Group | $8.6 trillion |
| Charles Schwab | $8.5 trillion |
| Fidelity Investments | $4.4 trillion |
| JPMorgan Chase & Co. | $3.9 trillion |
Employees exempt from FINRA registration include individuals whose functions are: Solely clerical and/or ministerial in nature, Related solely to the member's need for nominal corporate officers or capital participation (limited partners), OR.
What are the different types of dealers?
Types of dealers are: Bull, Bear, Jobber, Pig, etc. Types of Brokers are: Traditional Brokers and Discount Brokers.
(7) "Limited business broker-dealer" means any broker-dealer whose authorization to engage in the securities business is limited solely to the purchase and sale of investment company/variable contracts securities and direct participation program securities.
Publisher and government securities adviser are excluded from the definition of an investment adviser. Note that the publisher will fail the definition of an investment adviser if it provides general recommendations and does not target to support any specific group of investors.
"Investment adviser" does not include (a) a bank, savings institution, or trust company, (b) a lawyer, accountant, certified public accountant licensed under chapter 18.04 RCW, engineer, or teacher whose performance of these services is solely incidental to the practice of his or her profession, (c) a broker-dealer or ...
Exempt Reporting Advisers (ERAs) are investment advisers that are not required to register as an adviser with the U.S. Securities Exchange Commission (SEC) or state regulators, but must still pay fees and report public information via the IARD/FINRA system.
