SIE Understanding Trading, Customer Accounts and Prohibited Activities Practice Question 26

Question: 26

Which of the following would involve a broker-dealer acting in the capacity of a principal?

A. The broker-dealer advised the investor to sell the security.

B. The broker-dealer advised the investor to sell the security when it reaches a certain price.

C. The broker-dealer purchased the security from the investor.

D. The broker-dealer loaned the security to the investor.