When a broker-dealer sells you securities out of its inventory, the broker-dealer acts as a principal in the transaction (that is, selling to you directly the securities it holds). When acting in a principal capacity the broker-dealer generally will be compensated by selling the security to you at a price that is higher than the market price (the difference is called a markup), or by buying the security from you at a price that is lower than the market price (the difference is called a markdown).
Investing Quiz – September 2021
Test your knowledge on common investing terms and strategies and current investing topics.
Digital Asset and “Crypto” Investment Scams
Read our investor alert to learn the warning signs of investment schemes involving digital assets and “crypto.”
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Individuals, including those receiving lump sum insurance payouts, should be extremely wary of potential investment scams.