Regulations & ConductCâu 118 / 125
'Churning' refers to:
a.Diversifying a client's portfolio
b.Reinvesting dividends automatically
c.Rebalancing once per year
d.Excessive trading in a customer's account primarily to generate commissions
Giải thích
Churning is excessive trading in a customer's account that is driven by the representative's interest in generating commissions rather than the customer's investment objectives. It violates suitability and Reg BI obligations and is a prohibited practice regardless of whether the account gains or loses value.
Luyện miễn phí toàn bộ 125 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Under anti-money laundering (AML) rules, a Currency Transaction Report (CTR) must generally be filed for cash transactions exceeding:
- A Suspicious Activity Report (SAR) is filed by a firm when:
- Which of the following is a prohibited practice for a registered representative?
- Commingling a customer's funds or securities with the firm's own assets is:
- The Securities Investor Protection Corporation (SIPC) protects customers by:
- Under FINRA rules, most customer account records and communications must generally be:
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