Series 7 Exam Question 146: Answer and Explanation

Question: 146

Alyssa H. is interested in purchasing 1,000 shares of DIM Corp. common stock. As her registered rep, you feel that the transaction is unsuitable for her. You may still take the order from her if

• A. you obtain written approval from a principal
• B. instructed by Alyssa to do so
• C. you obtain written power of attorney from Alyssa
• D. you get prior approval from FINRA

Correct Answer: B

Explanation:

B. If a registered rep believes a transaction is unsuitable for a customer, the registered rep may still enter the transaction if the customer says the order should be entered. In this case, the registered rep would take the order and mark the transaction unsolicited.