Series 63 practice questionmediumGuarantees
A registered agent assures a client they will not lose money on a recommended investment. Under the USA, this statement is:
- AA prohibited guarantee of performance✓ Correct answer
- BPermitted if the investment is low-risk
- CAcceptable if not in writing
- DAllowed if the agent’s supervisor is notified
Explanation
Why A — A prohibited guarantee of performance
Guaranteeing against losses is prohibited under USA Section 402, regardless of risk level, oral or written communication, or supervisor notification.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Broker-Dealers & Agents questions
- Which of the following actions is LEAST likely to be considered prohibited under the USA?
- An agent wishes to share in the profits of a client’s account. To do so legally under the USA, what is required?
- A client asks her agent to 'pick an appropriate stock' and buy shares on her behalf, but does not specify which stock…
- An agent recommends and sells a private real estate investment to a client without the knowledge or approval of his…
- Which of the following is TRUE about 'selling away' under the Uniform Securities Act?
- The Administrator may require a broker-dealer to maintain a minimum net capital. This requirement is designed to:
- An agent wishes to split profits on an account with a long-time client who is also her cousin. The broker-dealer…
- A client of a registered agent in State Q gives verbal permission to buy 500 shares of a specific stock. The agent…