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Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questioneasySelling Away

Which of the following best describes 'selling away' as prohibited under the Uniform Securities Act?

  1. ARecommending a security not approved by the broker-dealer
  2. BSelling securities outside the scope of a broker-dealer's supervision✓ Correct answer
  3. CSelling securities to non-residents
  4. DSelling federal covered securities
Explanation

Why BSelling securities outside the scope of a broker-dealer's supervision

'Selling away' is when an agent sells securities not recorded or supervised by their broker-dealer (USA Section 402), a serious violation. Recommending unapproved securities is not the same as conducting unsupervised sales.

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