SIE practice questionmediumYield Curves/Economic Indicators
A registered rep intentionally misstates economic indicators such as the yield curve to interest clients in bond purchases. This is:
- AProhibited misrepresentation and fraud✓ Correct answer
- BPermissible if disclaimers are used
- CAcceptable marketing
- DAllowed only for accredited investors
Explanation
Why A — Prohibited misrepresentation and fraud
Misstating facts to induce transactions is fraudulent, regardless of disclaimers or the status of the investor.
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