Series 7 practice questionmediumSeminars and Public Appearances — Use of Charts and Graphs
At a seminar, a representative displays a chart showing 10 years of S&P 500 performance to illustrate market cycles. What additional requirement applies if the chart is accompanied by a recommendation for a specific stock?
- AThe representative must avoid using any charts in recommendations.
- BThe chart must show only the most recent five years of performance.
- CThe chart can only be shown if the representative is an RIA.
- DA principal must pre-approve the use of the chart and recommendation.✓ Correct answer
Explanation
Why D — A principal must pre-approve the use of the chart and recommendation.
Charts used in conjunction with recommendations of specific securities must be approved by a principal as they constitute retail communications involving product recommendations.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Seeks Business for the Broker-Dealer questions
- A registered representative is planning to host a seminar where options strategies will be discussed in detail and…
- A registered representative invites a guest speaker, who is not registered, to discuss tax strategies at a seminar.…
- A representative conducts a public seminar and makes unscripted comments about specific mutual funds. Which of the…
- A representative plans to distribute a research report from her firm's research department at a seminar. What is…