An Agent Who Arranges Security Transactions Among Investors Without Maintaining

question 10

Multiple Choice

An agent who arranges security transactions among investors without maintaining an inventory is called a

• A)broker.
• B)trader.
• C)capitalist.
• D)principal.
• E)dealer.

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Definitions:

Implied Authority

Authority of an agent that is not expressly granted but assumed to be given as necessary to perform tasks related to their job.

Actual Authority

The explicit power granted to an agent or representative by the principal to perform certain acts on their behalf.

Principal's Ratification

The formal approval by a principal (party in authority) of an act performed on their behalf, usually validating a previously unauthorized act.

Contractual Liability

The obligations and responsibilities one party owes to another under the terms of a contract.