Series 7 practice questioneasyProspecting and Cold Calling 1
Which communication is retail communication under FINRA rules?
- AA pitch made to one institutional account
- BA handwritten note to one existing customer
- CAn email sent to 40 retail prospects in a 30-day period✓ Correct answer
- DA private memo sent to registered representatives only
Explanation
Why C — An email sent to 40 retail prospects in a 30-day period
Retail communication includes any written or electronic communication distributed to more than 25 retail investors within 30 calendar days. Institutional and internal communications are categorized separately.
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