SIE practice questionmediumSuitability
A broker recommends high-yield bonds to a conservative investor. Which rule does this potentially violate?
- ASuitability✓ Correct answer
- BHypothecation
- CFINRA advertising rules
- DShort selling restrictions
Explanation
Why A — Suitability
Suitability requires recommendations to fit client risk tolerance. Hypothecation relates to margin accounts; advertising and short rules are unrelated.
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