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Series 7: Seeks Business for the Broker-Dealer
Series 7 practice questioneasyMarketing and Prospecting — Prospect Qualification

Before recommending a security, a representative must first:

  1. ARequest bank statements from the prospect
  2. BDetermine the prospect’s investment objectives and financial situation✓ Correct answer
  3. CObtain the prospect's tax return
  4. DCheck the firm's stock holdings
Explanation

Why BDetermine the prospect’s investment objectives and financial situation

Representatives must understand a prospect’s investment objectives and financial situation to ensure suitable recommendations are made.

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