A broker acts in which capacity when executing a customer order?

A broker acts in which capacity when

Multiple choice — select the best answer

AAs principal, trading from its own inventory
BAs an agent, matching buyers and sellers for a commission
CAs an underwriter committing its own capital
DAs a transfer agent

✓ Correct answer: B. As an agent, matching buyers and sellers for a commission A broker acts as an agent, arranging trades between buyers and sellers and charging a commission. It does not take ownership of the securities.

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A broker acts in which capacity when executing a customer order?

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