Regulation of Persons 1.2

Question 1

What is a Broker-Dealer’s own account called?

Answer 1

A proprietary account

Question 2

Individuals who buy and sell securities for their own accounts are not broker-dealers because…..

Answer 2

…they are engaged in personal investment activity, not the business of buying and selling securities for others.

Question 3

Underwriting shares of new securities for issuers is…?

Answer 3

One of the roles of a broker-dealer. They generally earn a spread or receive a commission on the sales, which they then use to pay their agents who actually made the sales to the clients.