Market Makers and Associated Persons

What this video covers

• Why a market maker must quote both a bid and an ask price, and why a dealer willing to sell only is not a market maker
• How market makers profit from the bid-ask spread versus how regular dealers earn trading profits
• Who falls under the broad associated person umbrella, including partners, officers, directors, employees, and control persons
• The clerical exception trap: only employees whose functions are solely clerical or ministerial are excluded from associated person status
• Why an employee loses the clerical exception the instant they perform any non-clerical function
• The one-way rule: every broker-dealer agent is an associated person, but not every associated person is an agent
• Why an issuer's agent need not be a broker-dealer's associated person at all, since associated person is defined relative to a broker-dealer