A Stockbroker Acts as a Principal on Behalf of the Customer

question 53

True/False

A stockbroker acts as a principal on behalf of the customer.

---

Definitions:

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument, legally transferring ownership or authorizing a transaction.

Liability

The legal responsibility or obligation to compensate someone else for harm or damage caused by one's actions or failure to act.

Time Paper

Commercial paper or negotiable instruments, like promissory notes or bills of exchange, that have a specific maturity date.

Overdue

Referring to something, such as a payment or task, that has not been completed or paid by its due date.