SIE practice questionmediumFINRA - Prohibited Sales Practices
A registered rep tells a client that an investment is 'guaranteed' to increase in value. This statement is:
- ARequired for suitability
- BPermitted if made orally
- CFalse and prohibited under FINRA rules✓ Correct answer
- DAcceptable if the client requests it
Explanation
Why C — False and prohibited under FINRA rules
Guarantees of investment returns are strictly prohibited. Permitting this on any basis would be misleading and a violation of FINRA rules.
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