SIE (Securities Industry Essentials) 2025 – 400 Free Practice Questions to Pass the Exam!

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Question: 1 / 400

When a broker-dealer charges a commission on a securities transaction, it has acted as:

an agent

When a broker-dealer charges a commission, it means they are acting as an agent for their client. This means they are executing the transaction on the client's behalf and receiving compensation for their services. Option B, a principal, would refer to a situation where the broker-dealer is buying or selling securities for their own account. Option C, an underwriter, would apply to situations involving the sale of new securities to the public. Option D, a trustee, would refer to a fiduciary role where the broker-dealer is managing securities or assets on behalf of a trust.

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a principal

an underwriter

a trustee

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