
About this episode
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the SIE Exam exam.
In this episode you will learn:
- The distinct roles of broker-dealers, investment advisers, and market makers.
- The definition of an agency transaction, where a firm acts as a broker.
- The definition of a principal transaction, where a firm acts as a dealer.
- How to identify the compensation for each role: commissions for agents and markups/markdowns for principals.
- A mnemonic to remember the difference: ABC (Agent, Broker, Commission).
For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818
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