FINRA Series 7 General Securities Representative Qualification Examination (GS) Series-7 Question # 86 Topic 9 Discussion
Series-7 Exam Topic 9 Question 86 Discussion:
Question #: 86
Topic #: 9
Which of the following are considered to be discretionary orders under the FINRA Rules of Fair Practice?
A.
a customer instructs her registered representative to purchase stock in XYZ whenever the representative deems the price to be right
B.
a customer instructs her registered representative to sell 300 shares of ABC that is long in her account whenever the representative thinks the time and price are appropriate
C.
a customer gives a member firm a check for $25,000 and instructs the firm to purchase bank stocks and insurance company stocks when the prices appear to be favorable
both A and C. Choice A is discretionary because the customer did not specify a quantity to purchase. Choice B only provides discretion about timing and thus is not discretionary. Choice C is clearly discretionary.
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