SIE practice questioneasyEconomic Indicators - Prohibited Claims
A registered rep guarantees a client that the yield curve will predict a stock’s price every time. This statement is:
- AProhibited and misleading✓ Correct answer
- BEncouraged by FINRA
- CRequired disclosure
- DAcceptable if stated in writing
Explanation
Why A — Prohibited and misleading
Guarantees of returns or predictions are prohibited and misleading. It is never acceptable to guarantee market performance, written or otherwise.
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