Series 24: 5.4. Principal Vs. Agency Transactions

Taken from our Series 24 Online Guide

5.4. Principal vs. Agency Transactions

Secondary market transactions are conducted by brokers and dealers. A firm may act as one or the other on any particular transaction, but not both.

When a firm acts as a broker, the firm serves as an agent or go-between for the buyer and the seller. The broker gets paid for the service by charging a commission. Transactions where a firm is acting as a broker are called agency transactions, since the firm is acting as an agent for the buyer and seller.

In the OTC market, a firm that helps a client execute a trade, but is not itself a market maker in the stock, would be performing in an agency capacity. In this case,

+ Read More

More Series 24 Info

What are people saying?

Create an Account

Since you're reading about Series 24: 5.4. Principal Vs. Agency Transactions, you might also be interested in:

Series 3 - 3.4.4.1. Inter-Commodity Spread Margins

Series 27 - Replacement of Accountant

Series 27 - Convertible Debt Securities

Series 26 - Exercise

Series 82 - FINRA Adjudicatory and Dispute Resolution Rules

Series 50 - Request for Proposal (RFP) Exemption

Series 66 - 3.1.3.3. Additional Fees

Series 7 - 13.1.1 Insider Trading

Please Enable Javascript
to view this content!

Site Login

TESTIMONIALS

What are people saying?

Between September 18 and December 3, I took exams for the Series 62, 63, 6 and 24. I studied for everything with Solomon, and passed them all on the first try. Solomon’s interactive/Ask the Professor teaching method was extremely helpful in grasping the necessary concepts. What a relief to be done. Thanks, Karen!

Karen H, Dalkeith Group, High Falls, NY

I had tried another learning system before Solomon and walked into the Series 24 unprepared and subsequently failed. After using the Solomon system for three weeks, taking full advantage of the app on my cell phone I walked into my second attempt very prepared for the type of questions I was going to see. Not only did I pass, I did so with confidence. Thanks so much Solomon!

Steven Eisner, Penn Mutual/HTK, Hauppauge, NY

I tried studying on my own using materials from another vendor, which was super wordy and lengthy. After much frustration, I looked for new study materials and discovered Solomon. It is concise, clear and presented well. The subject area quizzes and practice exams were unlimited and very helpful. Six weeks later I passed the Series 24 with an 85! I would not hesitate to use Solomon again, should the need arise.

Yasmeen M.

This is my fourth time using Solomon's exam materials (Series 99, 7, 63, and now the 24)....and I PASSED once again on my first try. Thank you Solomon- your exam question simulator was extremely helpful!

Kim Schmidt, Elmcore Securities, Las Vegas

Jeremy, I just wanted to take a moment to say thank you so much for your wonderful product! Your study guides helped me pass the 7, 66, 24, 52, and 53 all within 2 and a half months. Thank you again!

Christopher Kriak, Compliance Analyst, PNC Investments, Pittsburgh, PA

I originally started studying for the series 24 with Test Teachers... After being frustrated with confusing material, out of date information, contradicting questions/answer/study guides, I bought Solomon's practice exams... After one test, two things became clear: I was grossly unprepared for the exam The material, though difficult, didn't have to be taught in such a confusing manner.I passed the 24 on the fist time because of the quality of the practice exams from Solomon. Thank you! Putting it another way...If you are using anyone else to study, you owe it to yourself and your efforts to buy the practice exams from Solomon to get a true judge of your studying efforts.

Will, Bainbridge Island, WA