SIE practice questionmediumSEC/FINRA Rules
A firm consistently executes customer orders at prices less favorable than those available in the market, without disclosure. This is:
- APermitted under Reg A+
- BAllowed if the firm charges lower commissions
- COnly a violation for retail accounts
- DA violation of best execution requirements✓ Correct answer
Explanation
Why D — A violation of best execution requirements
Best execution rules require firms to seek the best available prices for client orders. It applies to all accounts, regardless of commission or offering type.
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