Which is the Type 8 regulated activity?

Which is the Type 8 regulated activity?

• A. Securities margin financing
• B. Providing automated trading services
• C. Advising on corporate finance
• D. Asset Management

Answer: (A)

Type 8 is about securities margin financing. This means a firm provides credit to a client to buy securities, with the loan typically secured by collateral such as cash or other securities and charged interest. It’s a lending activity tied specifically to financing the purchase of securities, so it requires a Type 8 license. The other options correspond to different regulated activities: providing automated trading services is a separate category (Type 7); asset management is Type 9; advising on corporate finance falls under other advisory or investment services, not margin lending. So the description of furnishing margin finance matches Type 8 exactly.

Type 8 is about securities margin financing. This means a firm provides credit to a client to buy securities, with the loan typically secured by collateral such as cash or other securities and charged interest. It’s a lending activity tied specifically to financing the purchase of securities, so it requires a Type 8 license.

The other options correspond to different regulated activities: providing automated trading services is a separate category (Type 7); asset management is Type 9; advising on corporate finance falls under other advisory or investment services, not margin lending. So the description of furnishing margin finance matches Type 8 exactly.