Trading, Accounts & Prohibited ActsQuestion 261 of 398
A registered representative sells a private investment to several clients on the side, receiving compensation, but never tells her firm or gets its approval. What prohibited activity is this?
a.Churning
b.Selling away (private securities transactions without firm approval)
c.Commingling
d.Marking the close
Explanation
Selling away is engaging in private securities transactions outside the scope of employment without providing prior written notice to, and receiving approval from, the firm. It denies the firm the ability to supervise the activity and protect customers.
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