Broker-Dealer Registration
Process for firms to legally buy and sell securities.
Detailed Explanation
Broker-Dealer Registration involves registering a firm with the SEC, joining a Self-Regulatory Organization (SRO) like FINRA, and registering with state securities commissions. The process requires filing Form BD, proving financial solvency (net capital requirements), and ensuring staff are qualified (passing exams). Registered broker-dealers are subject to strict regulations regarding sales practices, customer protection, record-keeping, and financial reporting.