A registered representative, also called a general securities representative, a
stockbroker
A stockbroker is a regulated broker, broker-dealer, or registered investment adviser (in the United States) who may provide financial advisory and investment management services and execute transactions such as the purchase or sale of stocks and ...
, or an account executive, is an individual who is licensed to sell
securities and has the legal power of an
agent
Agent may refer to:
Espionage, investigation, and law
*, spies or intelligence officers
* Law of agency, laws involving a person authorized to act on behalf of another
** Agent of record, a person with a contractual agreement with an insuranc ...
in the
United States.
Registered representatives usually work for
broker/dealer
In financial services, a broker-dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at the heart of the securities and ...
s licensed by the
U.S. Securities and Exchange Commission (SEC) and the
Self Regulatory Organizations (SRO) of the
New York Stock Exchange (NYSE) and
Financial Industry Regulatory Authority
The Financial Industry Regulatory Authority (FINRA) is a private American corporation that acts as a self-regulatory organization (SRO) that regulates member brokerage firms and exchange markets. FINRA is the successor to the National Associati ...
(FINRA).
To become a registered representative in the United States, one must be sponsored by a
broker/dealer
In financial services, a broker-dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at the heart of the securities and ...
firm and must pass the FINRA-administered
Series 7 Series 7 may refer to:
*The seventh season of any of many shows or series; see and
*Series 7 exam, officially the General Securities Representative Exam, the most comprehensive financial securities exam offered by the FINRA
*'' Series 7: The Conte ...
examination (known as the General Securities Representative Exam) or another Limited Representative Qualifications Exam. Some state laws and broker/dealer policies also require the
Series 63
The Uniform Securities Agent State Law Examination, commonly referred to as the Series 63, is developed by North American Securities Administrators Association (NASAA) and is administered by the Financial Industry Regulatory Authority (FINRA). The ...
examination (known as the Uniform Securities Agent State Law Exam).
A registered representative ("RR" or "rep" or "broker") is authorized to sell a large array of securities such as stocks, bonds, options, mutual funds, limited partnership programs and variable annuities. Registered representatives who sell variable products such as variable annuities or
variable universal life insurance policies typically also must obtain the appropriate state insurance department license(s).
See also
*
List of securities examinations
*
Stock selection criterion
*
Proper authority
In Australian corporations law, proper authority is the authorisation provided by a licensed securities dealer to an individual that permits the holder to represent the securities dealer.
See also
* Registered representative (securities), in the ...
, in Australia
References
External links
* FINRA Registration and Examination Requirements
Series 7 Sponsorship Gateway
United States securities law
{{US-law-stub