Are broker/dealers registered with the SEC?
Most "brokers" and "dealers" must register with the SEC and join a "self-regulatory organization," or SRO. This section covers the factors that determine whether a person is a broker or dealer.
What does a registered broker/dealer mean?
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. ... A brokerage acts as a broker (or agent) when it executes orders on behalf of its clients, whereas it acts as a dealer, or principal when it trades for its own account.
Who is a broker SEC?
Section 3(4) of the Act defines "broker" broadly as: any person engaged in the business of effecting transactions in securities for the account of others.... The term "person" includes entities as well as individuals. Unlike a broker who acts as agent, a dealer acts as principal.
What is a FINRA registered broker-dealer?
FINRA Regulates Broker-Dealers, Capital Acquisition Brokers, and Funding Portals. A Broker Dealer is in the business of buying or selling securities on behalf of its customers or its own account or both. A Capital Acquisition Broker is a Broker Dealer subject to a narrower rule book.