Series 7 practice questionmediumSocial Media — Sharing Market Predictions
A representative wants to tweet a market prediction suggesting a specific stock will outperform based on recent earnings. Which requirement must be met for this communication to be compliant?
- AThe representative must disclose that the prediction is not guaranteed and include supporting facts.✓ Correct answer
- BThe tweet must be approved by a principal before posting.
- CThe tweet must include a link to the firm's privacy policy.
- DNo requirements apply, as tweets are considered personal opinions.
Explanation
Why A — The representative must disclose that the prediction is not guaranteed and include supporting facts.
Communications making predictions or recommendations must include sufficient supporting information and appropriate disclaimers to avoid being misleading.
Turn it into reps
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