Series 7 practice questioneasyCustomer Contact and Communications 1
Which statement in a sales presentation would be prohibited?
- APast performance does not guarantee future results
- BInvestors should review the prospectus carefully
- CDifferent securities involve different levels of risk
- DThis recommendation is guaranteed to outperform the market✓ Correct answer
Explanation
Why D — This recommendation is guaranteed to outperform the market
Guarantees of performance are misleading and prohibited. Representatives may discuss risks and product features, but they cannot promise future returns.
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