SIE Exam Question 554: Answer and Explanation

Question: 554

Which of the following is a type of broker that acts as a liaison between an investor and a clearing corporation by helping to ensure that trades are settled appropriately and transactions are successfully completed?

• A. Carrying broker
• B. Clearing broker
• C. Executing broker
• D. Introducing broker

Correct Answer: B

Explanation:

A clearing broker acts as a liaison between an investor and a clearing corporation by helping to ensure that trades are settled appropriately and transactions are successfully completed.