SIE practice questionmediumBest Execution
A broker-dealer is required to seek 'best execution' for its clients. Which of the following best describes this obligation?
- AOnly executing trades in after-hours sessions
- BAlways executing trades on the New York Stock Exchange
- CCharging the lowest commission
- DExecuting customers' trades at the most advantageous combination of price and speed available✓ Correct answer
Explanation
Why D — Executing customers' trades at the most advantageous combination of price and speed available
Best execution means seeking the best overall result, not just lowest price or commission. The other options misrepresent the standard.
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