An agent who arranges a transaction between a buyer and a seller of equity securities is called a:
A) broker.
B) floor trader.
C) capitalist.
D) principal.
E) dealer.

Question

Quizplus · Accepted Answer

A broker is an individual or firm that acts as an intermediary between buyers and sellers of securities, and helps to facilitate transactions by arranging the exchange of securities for money or other securities. Floor traders execute trades on behalf of brokers, capitalists invest in securities, principals are individuals or firms who take trades onto their own books, and dealers buy and sell securities for their own accounts. Therefore, the best choice for this question is A) broker.

An Agent Who Arranges a Transaction Between a Buyer and a Seller