What role does a 'registered representative' play in trading?

What role does a 'registered representative' play in trading?

• A. A licensed individual who invests the firm's capital
• B. A licensed individual who executes trades on behalf of clients or their firm
• C. A compliance officer ensuring that trades are accurate
• D. An analyst who provides market research and forecasts

Answer: (B)

A registered representative plays a pivotal role in the trading process by executing trades on behalf of clients or their firm. This individual must be licensed, which indicates that they have completed the required examinations and met regulatory standards to operate within securities markets. Their responsibilities include taking client orders for buying and selling securities, ensuring that transactions comply with regulations, and providing clients with guidance and support regarding their investment decisions. The ability to execute trades on behalf of clients is fundamental to the function of a registered representative, as they act as the intermediary between the market and the clients, facilitating transactions that align with the clients' financial goals and strategies.

A registered representative plays a pivotal role in the trading process by executing trades on behalf of clients or their firm. This individual must be licensed, which indicates that they have completed the required examinations and met regulatory standards to operate within securities markets. Their responsibilities include taking client orders for buying and selling securities, ensuring that transactions comply with regulations, and providing clients with guidance and support regarding their investment decisions. The ability to execute trades on behalf of clients is fundamental to the function of a registered representative, as they act as the intermediary between the market and the clients, facilitating transactions that align with the clients' financial goals and strategies.