Series 63 practice questionmediumSelling Away
Which of the following is TRUE about 'selling away' under the Uniform Securities Act?
- AIt is only prohibited if the agent is compensated
- BIt is prohibited regardless of compensation or product type✓ Correct answer
- CIt is allowed with client consent
- DIt only applies to federal covered securities
Explanation
Why B — It is prohibited regardless of compensation or product type
'Selling away' is prohibited under the USA regardless of whether compensation is received or the type of security involved (Section 402). Client consent does not make it acceptable.
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