When a broker/dealer engages in a customer transaction from its own account, which of the following statements are TRUE?
Partners of the broker/dealer are trading in their personal accounts.
The broker/dealer is trading from its inventory with customers.
The broker/dealer must disclose its capacity as a principal in the transaction.
The broker/dealer must disclose its capacity as agent in the transaction.
A) I and III.
B) I and IV.
C) III and IV.
D) II and III.
Answer: D) II and III.