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What is the difference between a selling dealer and a primary distributor?

April 26, 2017Dealer difference distributor primary Selling

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What is the difference between a selling dealer and a primary distributor?

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10 Posted

These terms are not defined in the MSRB Rules. Because of the nature of 529 Plans, all firms that sell them are acting as dealers. However, not all dealers have a relationship with the issuer. Usually, one dealer will have the relationship with the issuer, and that dealer will be the primary distributor. That dealer will allow other firms to sell the Plan. These firms will be the selling dealers.