SIE Exam Practice Question 150
Question: 150
Which of the following are considered to be actions falling under the role of a dealer?
I. Charges a commission for their services
II. Participates in the trade by trading in and out of his or her own account
III. Fills the role of market maker
IV. May facilitate only the order execution for a customer
Correct Answer: D
Explanation:
Actions falling under the role of a dealer include participating in trades by trading in and out of his or her own account, such as using securities in the account to fill a buy order or buying securities for the account to fill a customer's sell order. Further, making a market in a security is also an action performed by a dealer. Conversely, a broker simply facilitates order execution for a customer, while not participating in the transaction, and charges a commission for their services.
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