Question

Which of the following is not something you should consider when evaluating a broker?

a.
Their experience
b.
Whether or not they are registered with FINRA
c.
Their educational background
d.
Whether or not they are registered with the SEC

Answer 1

Option D "Whether or not they are registered with the SEC" is the best answer. This is because it is the company selling brokerage that needs to be registered with the Securities and Exchange Commission (SEC), not the broker (who acts as middle man between the seller and the buyer). Important things to evaluate the broker would be their experience, educational background and registration wit the Financial Industry Regulatory Authority (FINRA).