If a broker dealer obtains information during the performance of duties to an issuer of securities, it may not use that information to solicit business. A broker dealer may obtain information from an issuer while acting as:

  • An underwriter
  • Transfer agent
  • Paying agent
  • Investment banker

Registered representatives and broker dealers may not disclose any information regarding clients to a third party, without the clients expressed consent or without a court order. If the client is an issuer of securities and the broker dealer is an underwriter, transfer agent, or paying agent for the issuer, then the broker dealer is precluded from using the information it obtains, regarding the issuer’s security holders, for its own benefit.

Series 62 textbook

 

Borrowing And Lending Money

Related Articles
  1. Investing

    Would You Make A Good Real Estate Broker?

    How to tell if you'd be good in this field. It is a common second career for many people, but isn't a good match for everyone.
  2. Investing

    How Do Real Estate Agents Get Paid?

    Most real estate agents are paid a commission based on the sale price of a property and split between the agents and brokers involved.
  3. Investing

    What Are The Differences Among A Real Estate Agent, A Broker And A Realtor?

    All three work in the real estate field, but there are differences between the job descriptions.
  4. Investing

    How Real Estate Agent and Broker Fees Work

    Are you buying or selling a home? Here's what you need to know about real estate agent and broker fees.
  5. Investing

    Brokerage Functions: Underwriting and Agency Roles

    Learning about underwriting and agency roles at a brokerage can give insight into how securities are issued and traded.
  6. Investing

    Career Comparison: Real Estate Agent or Mortgage Broker

    Considering a career as a Real Estate Agent or Mortgage Broker? This article can help you understand important differences between these careers.
  7. Personal Finance

    Research Report Red Flags For Brokers

    Discover how to look past analysts' ratings to find winning stocks for your clients.
  8. Investing

    Picking your first broker

    If you're a rookie investor, choosing a broker may be your first big investment decision. Learn more on whether you should you go with a full-service broker or a discount broker.
  9. Trading

    Is your forex broker a scam?

    While the forex market is slowly becoming more regulated, there are many unscrupulous brokers who should not be in business.
  10. Investing

    What is a Discount Broker?

    A discount broker is a stockbroker who carries out "buy" and "sell" orders at a reduced commission compared to a full-service broker, but provides no investment advice.
Trading Center