SIE practice questionhardTrade Execution
A broker executes a client’s order at a disadvantaged price while a better price was available on another market. This is a violation of what standard?
- AInsider trading
- BChurning
- CBest execution✓ Correct answer
- DRegulation S
Explanation
Why C — Best execution
Best execution requires brokers to seek the best price for customers. Churning is excessive trading, insider trading is based on material non-public information, and Regulation S addresses offshore offerings.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Trading & Settlement questions
- A customer’s limit order improves the market but is not displayed by the broker-dealer. What regulation is most likely…
- A margin account falls below the maintenance margin. Which of the following is the broker-dealer’s obligation?
- Which order type can be both triggered and then not executed if the market moves past the limit price without trading…
- A client wants an order to sell 2,000 shares if the stock falls to $40, but only if the shares can be sold at $39.90 or…