Why does the seller owe the broker money?
The seller has listed his property under an exclusive-agency listing with the broker. If the seller sells the property himself during the term of the listing to someone introduced to the property by the seller, he will owe the broker
Can a broker receive two offers at the same time?
Broker B, who represents a seller under an exclusive listing agreement, receives two offers for the seller's property at the same time: one from an agent in his office, and one from the salesperson of a cooperating broker. What should the broker do? Violation of the Code of Ethics
Why would a broker buy her own listing?
A broker purchased her own listing because she knew of a purchaser who would pay more than the listing price. The broker: Is liable to the seller for the profit she made.
What are the terms of a a broker's listing?
A broker has a listing, the terms of which allow him to earn a commission only if he finds a buyer before the seller or another broker does. This is an example of: A. Open listing B. exclusive right-to-sell listing C. multiple listing D. exclusive agency listing A A broker's license is suspended for six months.
Who is the person who acts on behalf of the stock broker?
As per Regulation 2(1)(gc) of SEBI (Stock-Brokers and Sub-Brokers) Regulations, 1992 a “sub-broker” (SB) means any person not being a member of stock exchange who acts on behalf of a stock broker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stock brokers.
What do you call someone who trades stocks?
A stock trader is someone who buys and sells stocks, whereas a stockbroker is a middleman or entity that helps a trader facilitate those trades.
Can you have 2 stock brokers?
The short answer is that yes, you can have more than one brokerage account. There's no legal limit to the number of investment accounts one person can have. And in some cases, having multiple brokerage accounts could be the best move for your financial situation.
Who is considered an insider?
An insider is a director, senior officer, entity, or individual that owns more than 10% of a publicly-traded company's voting shares. In the United States, the Securities and Exchange Commission (SEC) has enacted stringent rules to prevent insiders from engaging in insider trading.
How do you call people who invest?
An investor is someone who provides (or invests) money or resources for an enterprise, such as a corporation, with the expectation of financial or other gain.
What is the KISS rule of investing?
In other words, KISS in investing is an acronym that fully means “Keep It Simple, Stupid”. The principle expresses an ideology that implies that most systems work effectively when they are made and kept simple, with no complications.
Should I have 2 brokerage accounts?
While multiple brokerage accounts may provide benefits to a narrow range of retail investors, the added work may outweigh any advantage. Having more than one account means getting multiple emails, handling added 1099 tax forms, negotiating different platforms, and using many passwords (which carry hacking risks).
Can I have 2 Fidelity brokerage accounts?
Short answer: Yes, you can have multiple Fidelity accounts. They can also be together and linked as one to make signing in easier. There aren't any general downsides. It's purely a personal preference.
Should I have all my investments with one broker?
Many people have several types of brokerage accounts, including both taxable and retirement accounts. Keeping all your brokerage accounts with the same company can make it easier to keep a balanced, diversified portfolio.
How do you spot insider trading?
The SEC's Edgar database allows free public access to all filings related to insider buying and selling of stock shares....Insider Buying in the U.S.Forbes has a semi-daily report highlighting some important insider transactions.Finviz features a free and searchable database of insider dealings.More items...
What happens if you are caught insider trading?
If someone is caught in the act of insider trading, he can either be sent to prison, charged a fine, or both. According to the SEC in the US, a conviction for insider trading may lead to a maximum fine of $5 million and up to 20 years of imprisonment.
How long do you go to jail for insider trading?
20 yearsCriminal Penalties. The maximum prison sentence for an insider trading violation is now 20 years. The maximum criminal fine for individuals is now $5,000,000, and the maximum fine for non-natural persons (such as an entity whose securities are publicly traded) is now $25,000,000. Civil Sanctions.
What should a broker do if a broker receives two offers for the same house at the same time?
If a broker receives two offers for the same house at the same time, one from the agent of a cooperating broker and another from his own agent, the broker should: A blanket mortgage. The owner of a farm and an apartment house desires a mortgage loan and offers both properties as security.
How does Old Man Jones settle his affairs?
Old man Jones wants to settle his affairs prior to his death by selling his land and giving the money to his children. Broker Bob lists the property and markets it. After six months, an offer from Crazy Old Widow Smith, who lives in the next county, is received in the mail. Jones immediately signs the contract without change, ...
What happens if a buyer defaults on a land contract?
If the buyer in contract for deed (land contract) who has paid less than 20% equity defaults, the seller may: Whatever the parties decide in the contract. An option agreement allows a prospective buyer a period of time to examine property before deciding to complete the contract.
What time does Sam accept the offer?
He submits a written offer, stipulating that time is of the essence and that the offer must be accepted in writing before 12 o'clock noon three days hence. On the third day at 11:30 AM Buyer Bob telephones Sam to say that he has decided to accept the offer as written.
What happens to an agent when the principal dies?
A principal dies. The agent is not aware that the principal has passed away and continues to act on behalf of the principal several days past the principal's death.
What is it called when a person is authorized to act on behalf of another?
A person authorized to act on behalf of another is called a/an: An agency relationship . A relationship between one person (principal) and another (agent), wherein the agent is given the right to act on behalf of the principal in a business setting, is usually called: Agency disclosure.
What is the agent guilty of?
The agent is guilty of: Misrepresentation. When showing a listing, a sales agent is asked about the condition of the basement. Without having seen the basement, the agent states that, to the best of his knowledge, the basement is free of dampness. In fact, the basement leaks steadily whenever there is rain.
What is an employing broker?
The employing broker establishes compensation policies for the firm. An independent contractor and employing broker agree to terms of compensation in a written agreement. The broker does not dictate work schedule, number of hours worked, or specific dress code.
How much money can a woman recover from a civil suit?
The woman could recover $270,000 ($90,000*3=$270,000).
What is the difference between a licensed salesperson and an independent contractor?
The key distinction between a licensed salesperson who is an employee and one who is an independent contractor is the extent of the control exercised by the broker over the salesperson's activities. While in the employ of a real estate broker, salespersons have the authority to.
What is antitrust violation?
An antitrust violation occurs when two or more competing brokers conspire to fix prices or establish uniform policies. A real estate company has adopted a 100 percent commission plan.
Do brokers have to have a salesperson?
The broker must have a salesperson employed in the office. b. The obligation to pay, or entitlement to receive, compensation is a contractual issue. In order for brokers to receive compensation from a seller, they must have an express or implied agreement regarding compensation.
Can a broker be considered a procuring cause?
The broker may not be considered the procuring cause without a written contract. a. The broker and the consumer must agree on compensation arrangements before any services are rendered. Because there was no such discussion, the neighbor is not obligated to pay the broker anything for the services rendered.
Can a licensed salesperson receive compensation from a broker?
b.As a licensed salesperson, the only party the salesperson can receive compensation from is her employing broker. Acceptance of any fee, her employing broker. Acceptance of any fee, compensation, or other valuable consideration by a salesperson or from anyone other than the employing broker violates the licensing law.
What happens to an account that lists you and another co-owner as joint tenants with rights of survivorship?
An account that lists you and another co-owner as joint tenants with rights of survivorship will automatically go to the other co-owner upon your death. Spouses commonly use this form of ownership, because it grants both spouses the right to do transactions on the account during their joint lifetimes as well.
What age do you have to be to take an early withdrawal?
Age 59 1/2 is the usual threshold, and if you're younger than that, you'll often have to pay a 10% penalty on top of any other tax consequences if you take early withdrawals. Because of that, most investors like to keep both a regular taxable account and an IRA brokerage account.
Is it necessary to have multiple brokerage accounts?
However, you are definitely right that multiple brokerage accounts are not absolutely necessary to make full use of all the investment options available to you if you have only one brokerage account. One of the advantages of having all your assets in your single brokerage account is simplicity.
Can a child have a separate brokerage account?
The child is then entitled to full management and control of the investments within the account. Not all parents are comfortable with that aspect of custodial accounts, but for purposes of keeping financial resources for a child separate from your own assets, a separate custodial brokerage account can be useful.
Is brokerage bad for you?
No. There is nothing inherently bad about it. It is only a pragmatic concern. As brokerages are slightly different from each other, they all have advantages and disadvantages.
Is it bad to have two different brokers?
The fact you are with two different brokers for the same stock is not bad in and of itself (assuming you are not doing it for shady or illegal reasons), but it does raise two concerns. First, one broker will be better than the other, whether in terms of their fees, or customer service, or whatever matters to you.