Series 6: 8.2.2.1. Agency Vs. Principal Transactions

Taken from our Series 6 Online Guide

8.2.2.1. Agency vs. Principal Transactions

When a firm acts as a broker, it serves as an agent or go-between for the buyer and the seller. The broker gets paid for the service by charging a commission. Transactions where a firm is acting as a broker are called agency transactions, since the firm is acting as an agent for the buyer and sel

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