An agent tells a client that he will reimburse any losses in their account. Under the USA, this is:

1. APermitted if disclosed to the Administrator
2. BA prohibited guarantee of performance✓ Correct answer
3. CAcceptable for institutional clients only
4. DAllowed with written client consent

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.

• Which of the following is NOT considered a prohibited practice for agents under the USA?
• Under the USA, when may an agent share in the profits or losses of a client's account?
• An agent in State Z executes frequent trades in a client’s account that are not consistent with the client’s investment…
• Which of the following best describes 'selling away' as prohibited under the Uniform Securities Act?
• A client of a registered agent in State Q gives verbal permission to buy 500 shares of a specific stock. The agent…
• An agent at a broker-dealer executes a trade in a client’s account without prior written authorization. This is…
• The Administrator may require a broker-dealer to maintain a minimum net capital. This requirement is designed to:
• Under the Uniform Securities Act, churning refers to which of the following prohibited practices?