A broker
A)arranges transactions between buyers and sellers for a fee.
B)is a principal in a transaction.
C)holds an inventory of securities to be sold.
D)All of the above

Question

Quizplus · Accepted Answer

A broker arranges transactions between buyers and sellers for a fee, whereas a principal participates in the transaction as a buyer or seller themselves. A broker does not typically hold an inventory of securities to be sold, as that would make them a dealer. Therefore, only option A is correct.

A Broker