Final answer:
A salesperson in the securities industry must be supervised by a broker and is considered an agent of the broker for regulatory and supervisory purposes. The broker acts as a manager, regulating and supervising the sales activities to ensure legal compliance.
Step-by-step explanation:
The fact that a salesperson must always work under a broker's supervision makes it mandatory that, for certain purposes, the salesperson is considered an agent of the broker. In the context of the securities industry, the broker acts as a manager, executive, or official who regulates and supervises the sale of securities, as well as the salespersons who work for them. Salespersons are typically responsible for various sales activities, but ultimately, it is the broker who oversees these activities ensuring compliance with industry regulations and standards.
While a salesperson engages with clients and facilitates transactions, they do so under the guidance and supervision of a broker, who must ensure that all activities fall within legal and regulatory frameworks. This supervision is crucial because it guarantees that salespersons work ethically and within the boundary of the law, reflecting on the brokerage and the financial markets as a whole.