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.

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Definitions:

Stock Market

A public market for buying and selling company stock and derivatives at an agreed price; it is a key indicator of the health of an economy.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period, used as a broad measure of economic performance.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities such as U.S. Treasury bills.

Future Exchange Rate

The anticipated value of one currency in terms of another currency at a future date, often used in hedging and trading strategies.