SIE practice questionmediumBest Execution
A broker-dealer must execute customer trades so as to obtain the most favorable terms possible. This is known as:
- ABest execution✓ Correct answer
- BSuitability
- CChurning
- DTime and price discretion
Explanation
Why A — Best execution
Best execution obligations require firms to seek optimal pricing and terms. Suitability is about recommendations. Churning is excessive trading. Time and price discretion is about order instructions.
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