Series 63 practice questioneasySelling Away
Which of the following best describes 'selling away' as prohibited under the Uniform Securities Act?
- ARecommending a security not approved by the broker-dealer
- BSelling securities outside the scope of a broker-dealer's supervision✓ Correct answer
- CSelling securities to non-residents
- DSelling federal covered securities
Explanation
Why B — Selling 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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