Series 63 practice questionmediumProhibited Practices
Which of the following is a permitted action for an agent under the Uniform Securities Act?
- AExecuting a trade in a discretionary account with written authority✓ Correct answer
- BSelling a security not approved by the broker-dealer
- CGuaranteeing a client will not lose money on an investment
- DSharing in account profits with only client approval
Explanation
Why A — Executing a trade in a discretionary account with written authority
Agents may trade in discretionary accounts if written authority is on file (USA Section 402). The other actions are explicit violations regardless of intent.
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