Registered Principal

Definition of 'Registered Principal'


A licensed securities dealer who is also empowered to oversee operational, compliance, trading and sales operations and the personnel who staff them. Registered principals must have all the basic securities licenses required for the operation they oversee plus an additional principal license.

Investopedia explains 'Registered Principal'


Th Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange, the Securities and Exchange Commission (SEC), and other regulatory agencies require that certain activities be approved by a registered principal of a securities firm. Sales and advertising literature must be approved by a principal prior to use, for example.

Individual firms often supplement the approval procedures with higher levels of supervisory responsibility. One of the most well-known types of registered principals includes registered options principals (Series 4 required).



comments powered by Disqus
Hot Definitions
  1. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  2. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  3. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  4. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  5. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  6. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
Trading Center