Series 63 practice questioneasyProhibited Practices
Which of the following is NOT considered a prohibited practice for agents under the USA?
- AExecuting a trade with written discretionary authority✓ Correct answer
- BChurning a client’s account
- CSelling away without firm approval
- DGuaranteeing a profit to a client
Explanation
Why A — Executing a trade with written discretionary authority
Executing a trade with written discretionary authority is permitted. Churning, selling away, and guaranteeing profits are all prohibited under USA Section 402.
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