Series 7 practice questionmediumSeminars and Public Appearances — Prohibited Statements
During a public appearance, a representative states, 'This investment is guaranteed to outperform the market.' Which rule is being violated?
- ARequirement to file with FINRA within 10 days
- BProhibition on third-party endorsements
- CProhibition on performance guarantees✓ Correct answer
- DRequirement to disclose all risks
Explanation
Why C — Prohibition on performance guarantees
FINRA strictly prohibits representatives from making guarantees about investment performance, as all investments involve risk.
Turn it into reps
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