Sample Questions: 6 Top Off
Question 2 of 10
A representative is excited about the price appreciation potential of a low price speculative stock and telephones all of her customers to recommend the issue. Under FINRA rules, this action is:
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The best answer is C. FINRA does not prohibit the recommendation of low-price speculative securities - as long as the recommendation is "suitable" for that customer. It does prohibit, however, "blanket" recommendations of low-price speculative securities, such as through a telephone campaign, since this means that a suitability determination is not being completed for each customer to whom the security is being recommended.