Broker-Dealer (USA Definition)
A firm in the business of effecting securities trades for others or its own account.
What is Broker-Dealer (USA Definition)?
Excluded from the definition: agents, issuers, banks, savings institutions and trust companies, and firms with no place of business in the state that deal only with issuers, other broker-dealers, or institutional investors. A broker-dealer that does business in a state and is not excluded must register there.
Broker-Dealer (USA Definition): a worked example
An out-of-state firm whose only in-state customers are insurance companies need not register in that state.
More terms in Uniform Securities Act & Registration
Uniform Securities Act (USA)
The model state securities law most states' 'blue sky' statutes are based on.
State Securities Administrator
The official or agency that enforces a state's securities act.
Person (USA Definition)
Anyone who can be held legally responsible - individuals and organizations.
Investment Adviser (USA Definition)
Advises on securities, as a business, for compensation.
Excluded from the Investment Adviser Definition
Banks, incidental professionals, broker-dealers, and publishers are not advisers at all.
Exemptions from State Adviser Registration
An adviser with no office in the state and only institutional or very few clients there.
De Minimis Exemption
No place of business in the state and fewer than 6 clients there in 12 months.
Federal Covered Adviser
An adviser registered with the SEC rather than the states.
All Uniform Securities Act & Registration terms · Full glossary