CFA Practice Question
On a U.S. exchange, commission brokers are ______
A. are independent members of an exchange who act as brokers for other members.
B. employees of a member firm who buy or sell for the firm's customers.
C. members who buy and sell securities for their own accounts.
Explanation: A U.S. exchange typically has 4 types of members: Specialists, Commission brokers, Floor brokers and Registered traders. Commission brokers are employees of a member firm who buy or sell for the firm's customers. Floor brokers are independent members of an exchange who act as brokers for other members. Registered traders are members who buy and sell securities for their own accounts. Specialists are market-makers for specific stock assigned to them.
User Contributed Comments 4
| User | Comment |
|---|---|
| danlan | A: floor broker. C: registered trader |
| jpducros | COMmission brokers = work for a COMpany flOor Broker = work for Others Registered trader = work for Rimself ! |
| makatang | thx jpducros ill rmb it like that ;) |
| Insipidity | thanks jpducros! |