Lucky the Banker mascotLTB
← SIE: Communications & Sales Practices
SIE practice questionmediumPrivate Securities Transactions

A registered representative participates in selling securities of a friend's private company without notifying the firm. This activity is known as:

  1. AFront-running
  2. BSelling away✓ Correct answer
  3. CInsider trading
  4. DFree-riding
Explanation

Why B — Selling away

Selling away refers to a registered representative participating in private securities transactions — selling or soliciting securities outside the scope of their employment — without providing prior written notice to their broker-dealer. This violates FINRA Rule 3280. If the representative receives compensation, the firm must approve and supervise the activity as if it were done through the firm. If no compensation is involved, prior written notice is still required, but the firm may simply acknowledge it.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Practice SIE freeSIE exam guide

Spot an error in this question or explanation? Tell us — we fix these fast.

Related Communications & Sales Practices questions