For a mock NASAA exam, assume the administrator is testing this exact point. Assume the administrator is testing the cleanest state-law answer. An agent executes a trade in a customer's account without the customer's prior knowledge or authorization and without discretionary authority. This is considered:

Why A — An unauthorized transaction, which is a prohibited practice

Under NASAA's Statement of Policy on Dishonest or Unethical Business Practices, executing transactions without the customer's prior authorization and without written discretionary authority is a prohibited practice. It is a violation regardless of whether the trade is profitable, as the customer has the right to control activity in their own account. The governing USA principle is unchanged even though the framing is different.