Series 7 practice questioneasyMarketing and Prospecting — Prospect Qualification
Before recommending a security, a representative must first:
- ARequest bank statements from the prospect
- BDetermine the prospect’s investment objectives and financial situation✓ Correct answer
- CObtain the prospect's tax return
- DCheck the firm's stock holdings
Explanation
Why B — Determine 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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