Series 79: Selected Dealers Agreement

Taken from our Series 79 Top-off Online Guide

Selected Dealers Agreement

A selected dealers agreement, or selling group agreement, is an agreement between the underwriters and the securities dealers that will sell the securities to retail investors. The selected dealers agreement describes the terms of the relationship, most notably the dealer compensation arrangement. Dealers in a selling group make money by buying shares from the syndicate at a discount and reselling them at the higher public offering price. In other words, some

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Solomon Exam Prep Study Materials for the Series 79
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