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SIE: Trading & Settlement
SIE practice questionmediumProhibited Transactions

Which of the following client instructions must never be followed by a registered representative?

  1. APurchase municipal bonds for income.
  2. BSell shares for a client at the market price.
  3. CRebalance a client’s portfolio.
  4. DExecute a trade based on non-public material information.✓ Correct answer
Explanation

Why DExecute a trade based on non-public material information.

Trading based on non-public material information is illegal. The others are legitimate investment instructions.

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