Series 63 practice questionmediumThree-Prong Test—Business
Which of the following situations would meet the 'in the business' prong of the IA definition?
- AGiving one-time advice as a favor to a friend
- BRegularly providing clients with recommendations for compensation✓ Correct answer
- CPublishing a free blog about mutual fund investing
- DOccasionally answering questions at social gatherings
Explanation
Why B — Regularly providing clients with recommendations for compensation
'In the business' requires regular, compensated advice. A and D are not business activity, C is publisher exclusion.
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