Stock Jobs Stock Broker and Dealer Career Roles

Question 1

What is the primary difference between a 'stockbroker' and a 'financial adviser'?

Accepted Answer

Stockbrokers primarily execute trades while financial advisers provide comprehensive financial planning and investment guidance

Answer

Stockbrokers only work with corporations while financial advisers work with individuals

Answer

Stockbrokers are licensed by the SEC while financial advisers are licensed by FINRA

Answer

There is no difference; the terms are legally interchangeable

Question 2

What is the Series 7 exam and who must pass it?

Accepted Answer

The General Securities Representative Exam required for broker-dealers to sell most types of securities

Answer

An advanced options trading certification for experienced traders

Answer

A regulatory examination for hedge fund managers

Answer

An SEC-administered exam for portfolio managers at mutual funds

Question 3

What does a 'market maker' do in the stock market?

Accepted Answer

Provides liquidity by continuously quoting bid and ask prices and standing ready to buy or sell securities

Answer

Creates new markets by listing new stocks on exchanges

Answer

Makes decisions about which companies can list on major exchanges

Answer

Marks up the price of securities before selling to retail investors

Question 4

What is a 'registered investment adviser' (RIA)?

Accepted Answer

A firm or individual registered with the SEC or state regulators to provide investment advice for compensation

Answer

A licensed stockbroker registered with a national exchange

Answer

An investment analyst who has registered their research with FINRA

Answer

A corporate treasurer registered to advise on company investments

Question 5

What is a 'prime broker' and who uses their services?

Accepted Answer

A firm providing bundled services including clearing, financing, and custody primarily to hedge funds and large institutional clients

Answer

The leading broker by trading volume on a stock exchange

Answer

The first broker a company uses when going public

Answer

A government-designated primary dealer in US Treasury securities

Question 6

What is the role of an 'investment banker' in relation to stocks?

Accepted Answer

Helping companies raise capital through IPOs and secondary offerings while advising on mergers and acquisitions

Answer

Managing retail client stock portfolios for a bank

Answer

Operating the bank's internal stock trading desk

Answer

Providing bank customers with stock recommendations