SIE practice questioneasyTrade Execution
Which entity is responsible for ensuring best execution of customer orders?
- AThe Exchange
- BFINRA
- CBroker-dealer✓ Correct answer
- DThe Customer
Explanation
Why C — Broker-dealer
Broker-dealers are legally obligated to seek the best execution for their customers' orders. FINRA and exchanges establish rules, but the broker-dealer directly handles client orders. Customers rely on their broker for execution.
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.
Related Trading & Settlement questions
- Under Regulation T, what is the initial margin requirement for purchasing stock on margin?
- A customer wants to sell shares of ABC only if the price falls to $45 or lower. Which type of order should they place?
- A buy limit order is placed at $30. Where must the stock trade for the order to execute?
- A client instructs her registered representative to buy 100 shares of XYZ at the best available price as soon as…