Series 63

AAA

Registrations of Persons - Agents: Definition



Look Out!

It is important to note that the actual USA also refers to "agents" as "sales representatives." Please do not be confused if the two are interchanged on the exam!


Agent Definition

"Agent" means an individual, other than a broker-dealer, who represents a broker-dealer in effecting or attempting to effect purchases or sales of securities or represents an issuer in effecting or attempting to effect purchases or sales of the issuer's securities."

This, of course, is the individual who we usually call a registered representative. This person generally works for a broker-dealer.


Exam Tips and Tricks
Agent: Any INDIVIDUAL who acts for or represents a broker-dealer in effecting securities transactions. The term also applies to any individual who similarly represents an issuer


An agent is a salesperson who represents a broker-dealer or issuer, either selling or attempting to sell securities to the investing public. Any time that an agent is acting on the behalf of another, he or she is generally known as acting on the behalf of principals. Agents are also known as registered representatives, but can also be referred to as sales representatives. A brokerage firm cannot be an "agent" because an agent can only be a natural person.

Agents: Registration
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