Broker/Dealer Flashcards
1
Q
What is a Dealer
A
Acts on behalf of the brokerage firm, initiating transactions for the firm’s own account
2
Q
What is a Broker
A
Handles transactions, buying and selling securities on behalf of their clients.
3
Q
Define Dealer
A
People or firms who buy and sell securities for their own account, whether through a broker or otherwise
4
Q
Who regulates Dealers?
A
SEC
5
Q
Who are Market Makers?
A
Dealers
6
Q
Do brokers trade their own portfolio?
A
No
7
Q
How does a dealer profit?
A
The spread between the bid and ask prices, while also adding liquidity to the market
8
Q
Who does a trader buy for?
A
Trader buys and sells securities for their own account—not on a business basis
9
Q
How does a dealer get paid?
A
Mark-up
10
Q
How does a broker get paid?
A
Commissions
