SIE practice questioneasyFINRA Rules
A registered representative recommends frequent trades in a customer’s account solely to generate commissions. This is called:
- ASelling away
- BChurning✓ Correct answer
- CBreakpoint sale
- DFree-riding
Explanation
Why B — Churning
Churning is excessive trading for commissions, prohibited by FINRA. Selling away is trading outside the firm; breakpoint sales and free-riding are different regulatory issues.
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