Series 50: Municipal Securities Dealer

Municipal Securities Dealer

Collectively, all broker-dealers and bank dealers that underwrite, trade, and sell municipal securities are known as municipal securities dealers.

The 1934 Act defines a municipal securities dealer as any person, including a separately identifiable department or division of a bank, engaged in the business of buying and selling municipal securities for its own account. However, municipal securities dealers do not include:

• • Those that buy or sell municipal securities for their own account but not as part of a regular business
• • Banks that only act as agents, not dealers (However, remember that a separate division or department of a bank that engages in municipal securities business would be deemed a municipal securities dealer.)

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