Series 63 practice questionmediumProhibited Practices
Which of the following actions is LEAST likely to be considered prohibited under the USA?
- AAn agent with written discretionary authority chooses the time and price of a transaction✓ Correct answer
- BAn agent sells a client an unapproved security outside the broker-dealer’s supervision
- CAn agent promises to make up for any client losses
- DAn agent excessively trades in a client account for commissions
Explanation
Why A — An agent with written discretionary authority chooses the time and price of a transaction
Choosing time and price with written authority is permitted under USA Section 402. The other actions are explicit violations (selling away, guarantees, and churning).
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