Securities and Exchange Commission (SEC) goals
-require the issuer to provide investors with full and fair disclosure, accurate
security
an investment contract offered through a legal entity managing the efforts for an expected profit. (ex: stocks, bonds, mutual funds)
issuer
a legal entity, such as a corporation or the government, offering securities to the public to raise capital
broker-dealer (bd)
a firm in the business of executing securities trades for compensation
broker
a firm acting as an agent, executing orders on behalf of customers, and who gets paid on commission
dealer
a firm acting as a principal, trading for its own account, and who charges a mark-up on purchases or mark-down on sales instead of being paid commission
associated person
Any partner, officer, director, or branch manager; any person under common control, or any employee of a broker or dealer (registered representative is included in the definition of an associated person).
Securities and Exchange Commission (SEC)
ultimate enforcer of federal securities laws. regulate the financial markets and establish accounting standards .