Series 22: Finder

Taken from our Direct Participation Programs Representative Exam

Definition of the term Finder...

a person employed instead of a placement agent to locate potential investors for a private placement. Finders cannot by law promote or recommend securities to a prospective investor, develop terms, or negotiate for either the issuer or investor. They must base their compensation on either a flat fee or a percentage fee that is not contingent on the closing of a securities sale.

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