SIE practice questionmediumProhibited Account Activities
A registered representative executes trades in a customer account without authority. This is an example of:
- ABeneficial ownership disclosure
- BMargin maintenance
- CSuitability review
- DUnauthorized trading✓ Correct answer
Explanation
Why D — Unauthorized trading
Trades without customer agreement or proper discretionary authority are unauthorized trading, which is prohibited. The other choices are not violations in this scenario.
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