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Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questioneasyProhibited Practices

Which of the following is NOT considered a prohibited practice for agents under the USA?

  1. AExecuting a trade with written discretionary authority✓ Correct answer
  2. BChurning a client’s account
  3. CSelling away without firm approval
  4. DGuaranteeing a profit to a client
Explanation

Why AExecuting 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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