SIE practice questionmediumContent Standards
A communication claims an investment is 'guaranteed safe.' What is the regulatory issue?
- AIt is misleading as most investments have risk✓ Correct answer
- BIt is allowed if approved by a principal
- CIt is allowed if no performance data is shown
- DIt is allowed with customer consent
Explanation
Why A — It is misleading as most investments have risk
Claims like 'guaranteed safe' are misleading and prohibited by FINRA.
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