Series 7 practice questioneasyCustomer Profiles — Suitability
Under FINRA Rule 2111, which of the following is NOT one of the three suitability obligations a registered representative must satisfy?
- AReasonable-basis suitability
- BCustomer-specific suitability
- CProfitability suitability✓ Correct answer
- DQuantitative suitability
Explanation
Why C — Profitability suitability
FINRA Rule 2111 establishes three suitability obligations: reasonable-basis (the investment must be suitable for at least some investors), customer-specific (suitable for the particular customer), and quantitative (the number of transactions must not be excessive). There is no 'profitability suitability' obligation.
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