Download SIE: Understanding Different Market Participants and Their Roles in Securities Industry and more Exams Business Economics in PDF only on Docsity! SIE (Market Participants and their Roles) Accredited Investor - Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year Institutional Investor - Banks, insurance companies, investment companies registered with the SEC, small business investment companies, private business development companies, certain employee benefit plans as well as trusts and tax-exempt organizations with more than $5 million in assets Retail Investor - a natural person, or the legal representative of such natural person, who seeks to receive or receives services primarily for personal, family or household purposes (buys and sells securities through traditional or online brokerage firms or other types of investment accounts) Broker-Dealer - A financial intermediary (often a company) that may function as a principal (dealer) for proprietary accounts or as an agent (broker) for customers Introducing Broker (IB) - The middle man. Not registered with the FCM but gets them business. They take a percentage of the commission paid to the FCM. Clearing Broker - broker-dealer that clears transactions for itself or accounts of other broker-dealers either on a fully disclosed or omnibus basis. Prime Broker - -registered broker-dealer that clears and finances the customer trades executed by one or more other registered broker-dealers ("executing broker") at the behest of the customer. -makes commissions on trade spreads and interest rate on borrowed funds Investment Advisors - An investment adviser is a person or firm that is engaged in the business of providing investment advice to others or issuing reports or analyses regarding securities, for compensation. (e.g. money managers, investment consultants, financial planners, general partners of hedge funds, and others who are compensated for providing advice about securities.) Municipal Advisors - person (who is not a municipal entity or an employee of a municipal entity) that provides advice to or on behalf of a municipal entity or obligated person with respect to municipal financial products or the issuance of municipal securities, or that undertakes a solicitation of a municipal entity or obligated person. Issuers and Underwriters - -person or persons performing the duties of the trust or other agreement or instrument under which such securities are issued -any person who has purchased from an issuer, offers or sells for an issuer in connection with, the distribution of any security, or participates or has a direct or indirect participation in any such undertaking Traders and market makers - -a firm that stands ready to buy and sell a particular stock on a regular and continuous basis at a publicly quoted price Custodians and trustees - -A custodian is the entity that actually holds the assets in question for safekeeping (eg. TD Ameritrade, Fidelity, Charles Scwab) -A Trustee manages assets on behalf of the beneficiary of a trust, an estate or another party. Trustees have the authority to make management decisions, but don't necessarily hold or secure assets
