Series 7 practice questioneasyCustomer Contact and Communications 1
A broker-dealer seminar invitation offering a free dinner to attendees must be reviewed carefully because regulators are concerned about:
- Aviolations of Regulation T
- Bimproper inducements and misleading promotional practices✓ Correct answer
- Closs carryforward reporting
- Dmunicipal MSRB trade reporting
Explanation
Why B — improper inducements and misleading promotional practices
Sales seminars are permitted, but firms must ensure they are fair, balanced, and not misleading. Promotions that pressure or improperly induce customers raise suitability and communications concerns.
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