Which of the following would constitute a violation of the FINRA Conduct Rules?
A. Opening a cash account for a customer without obtaining that customer's signature
B. Offering to trade ETF shares for a customer
C. Recommending to a customer that he should get a group of friends together to buy mutual fund shares at a breakpoint
D. Discussing the purchase of mutual fund shares with a customer before sending a prospectus
C. Recommending to a customer that he should get a group of friends together to buy mutual fund shares at a breakpoint
Under the FINRA Conduct Rules, trading of mutual fund shares is prohibited but the trading of ETFs is acceptable. Remember, mutual funds are redeemable securities - not negotiable securities.
Recommending that customers group together to buy mutual fund shares at a breakpoint is also prohibited. Breakpoints are only available to individual customers.
No customer signature is needed to open a cash account. The signature is needed to open a margin account only.
Discussing the purchase of mutual fund shares before sending a prospectus is allowed, but the customer must receive the prospectus either at, or prior to confirmation, of an order for the shares.
You might also like to view...
The competitive intelligence function works best when it is closely coordinated with the decision-making process
Indicate whether the statement is true or false
Knowledge of litigation public relations is essential for trial lawyers hoping to provide a client every advantage
Indicate whether the statement is true or false
What type of educational activities benefit most from cognitive intelligence, and which benefit most from emotional intelligence and emotional competencies? Provide evidence from the studies covered in the text.
What will be an ideal response?
If a firm raises capital by selling new bonds, the buyer is called the "issuing firm" and the coupon rate is generally set equal to the firm's required rate.
Answer the following statement true (T) or false (F)