Markets Flashcards
Broker-dealer
A firm that can chose to act as a middleman or sell securities out of their inventory in a transaction, but they cannot charge BOTH a commission and a mark up
Security
A product that can either be traded or redeemed and is acquired with the goal of making a financial return
Non-exempt
Describes issuers and securities that are required to follow specific federal securities laws
Dealer
A firm that buys and sells securities into and out of their inventory charging mark-ups and mark-downs
Exchange
A highly regulated centralized marketplace where securities are traded
SRO
A self-policing organization designed to promote fair and equitable trading practices
Over-the-counter
Electronic marketplace where securities are traded with less regulations
Broker
A firm that acts as a middleman matching customer orders and charging commissions
Primary Market
Where new securities are traded for the first time
Registered REP (RR)
An employee of a firm who handles customers assets or works directly with the public
Secondary market
Where securities are traded between investors
Exempt
Describes issuers and securities that are NOT required to follow specific federal securities laws
