SIE practice questionmediumFINRA Rules
Which action is prohibited under FINRA rules regarding customer accounts?
- AProviding account statements
- BOpening a cash account
- CRecommending mutual funds to suitable clients
- DEngaging in excessive trading to generate commission revenue✓ Correct answer
Explanation
Why D — Engaging in excessive trading to generate commission revenue
Churning (excessive trading for commissions) violates FINRA suitability standards. The other actions are permitted or required.
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