Series 7 practice questionhardSocial Media and Digital Communications — Static vs. Interactive Content
A broker posts a chart about municipal bond trends on their firm's Facebook page. Clients begin commenting, and the broker replies with investment recommendations tailored to each commenter. Which of the following best describes the regulatory supervision requirements for these activities?
- AThe original post is static content requiring pre-approval; replies are interactive and require post-use review✓ Correct answer
- BNo approval or review is required if content is educational
- CBoth the original post and replies are static content, requiring pre-approval only
- DBoth the post and replies are interactive content, requiring post-use review only
Explanation
Why A — The original post is static content requiring pre-approval; replies are interactive and require post-use review
Static content (original post) requires principal pre-approval, while interactive content (replies) may be supervised post-use. Investment recommendations in replies require special scrutiny.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 758+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Seeks Business for the Broker-Dealer questions
- A registered representative's LinkedIn profile displays several client testimonials posted by clients without the…
- A registered representative uses a third-party messaging app to communicate with clients about potential investments.…
- A registered representative posts on Twitter: 'TechCo stock is set to soar—buy now!' Several followers purchase the…
- A representative uses a firm-approved app to recommend a specific ETF to all clients on his contact list. Which…
- Under the Telephone Consumer Protection Act, a retail cold call may be placed only between:
- A registered representative posts a hyperlink to a third-party article about mutual funds on their firm's website.…
- When using social media for business purposes, a static profile page is generally treated as:
- A client sends a direct message on a firm's approved social platform requesting investment advice. What should the…
