CFA Practice Question

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!
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