Registered representative

An investment salesperson or broker who is licensed by the SEC (Securities and Exchange Commission) and by the NYSE (New York Stock Exchange).

Registered representatives are licensed to act on investors' orders to buy and sell and to provide advice relevant to portfolio transactions.

They may be paid a salary, a commission, usually a percentage of the market price of the investments their clients buy and sell, or by annual fee figured as a percentage of the value of a client's account.

Registered reps work for a broker-dealer that belongs to the exchange or operates in the market where the trades are handled. The reps must pass a series of exams administered by NASD to qualify for their licenses and are subject to NASD oversight.