Brokers

question 46

Multiple Choice

Brokers:

• A)earn a spread by buying securities at a low price and selling them at a higher price
• B)operate in over-the-counter markets
• C)charge a commission on the trades they perform
• D)can be described as 'market makers'.
• E)All of these.

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Definitions:

Criminally Liable

The legal responsibility one holds for committing a crime, subjecting them to criminal prosecution and penalties.

Vicarious Liability

A legal principle where an individual or entity is held responsible for the actions or omissions of another person, typically in employment situations.

Scope of Employment

Refers to the range of activities and duties that an employee is expected to perform as part of their job.

Undisclosed Principal

A party in a contract whose identity is unknown to the third party at the time the contract is made.