What is a BD Form?
Properly known as a broker dealer form, a BD form is a document that must be filed with the Securities and Exchange Commission in the United States by every brokerage house that wishes to operate within the country. BD forms carry basic information about the brokerage, such as the finances of the firm and a list of the company officers. Here are some facts about the BD form, and why it is an important document. One of the main purposes of the SEC is to limit the operation of unethical and unscrupulous brokerages within the country. Keeping information on hand about each and every broker in the United States makes it possible to monitor activity and make sure that all transactions that are conducted by a brokerage house are in keeping with the rules and regulations that are part of financial law in the USA. In exchange for filing a BD form, the SEC issues credentials to the broker, allowing the operation to function under the auspices of government approval. The vast majority of busines
