Series 7 - General Securities Representative Exam
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Which one of the following is a principal transaction?
ABC broker-dealer locates shares on an exchange and sells them to its client
A
ABC broker-dealer uses a broker's broker to find shares to sell to its client
B
ABC broker-dealer sells shares out of its own inventory to its client
C
ABC broker-dealer issues a firm quote as a DMM on a security
D
Explanations
C is a principal (dealer transaction). A & B are agency transactions. D is not a transaction