NOW, THEREFORE, in light of the above and reciprocal agreements and agreements in this agreement, and in order to conclude the purchase and sale of the Company`s shares, it is agreed below: A broker-trader (B-D) is a person or company engaged in the purchase and sale of securities on its own behalf or on behalf of its clients. The term “broker dealer” is used in U.S. securities regulations to describe brokers, as most of them act both as agents and as contractors. Many broker-dealers also serve primarily as distributors of equity investment funds. These brokers may be compensated in a variety of ways and, like all brokers, they are subject to compliance with the requirements of the Securities and Exchange Commission and one or more self-regulatory organizations, such as the Financial Industry Regulatory Authority (FINRA). [9] The form of compensation may be from investors or from Rule 12b-1 of the fees or service charges paid by the investment funds. [10] There are several online portals that offer broker support and search functions. According to the Financial Industry Regulatory Authority (FINRA), more than 3,700 brokers are available. A look at the top 15 fund-based broker dealers (AUM) from June 2020 shows the three largest: in the United States, brokers are regulated by the Securities and Exchange Commission (SEC), a U.S. government entity, under the Securities Exchange Act of 1934. All sec-registered brokers and traders (in accordance with 15.C.C 78o), with a number of exceptions, must be members of the Securities Investor Protection Corporation (SIPC) (in accordance with 15.C 78ccc) and are subject to regulation. Some regulators will be delegated to the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization.

Many states also regulate brokers under separate national securities laws (“blue-sky”). [4] On April 28, 2004, the SEC voted unanimously to change the net capital rule for brokers, allowing those with more than $5 billion in “net provisional capital” to increase their leverage ratio. [7] The rule change remains in effect, but it is subject to amendments. Although many broker-dealers are “independent” companies that deal exclusively with broker-dealer services, many other commercial entities or subsidiaries are commercial banks, investment banks or investment firms.