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Which of the following is the MOST ACCURATE statement about rules prohibiting securities broker-dealers from making unsuitable recommendations on investments or investment strategies?
- A . A suitability violation occurs when a broker does not carry out a trade requested by or promised to a customer
B. A suitability violation occurs when a broker recommends an investment or investment strategy that is inconsistent with the client's objectives
C. A suitability violation occurs when a broker trades in a client's account without obtaining prior approval for making the transaction(s).
D. A suitability violation occurs when a broker enters into transactions and manages a client's account for the purpose of generating excessive commissions
Suggested Answer: D
Posted : 13/11/2022 4:45 am