Series 7 Exam Question 220: Answer and Explanation

Question: 220

Advertisements including recommendations must include all of the following EXCEPT

• A. If the firm is a market maker in the security being recommended
• B. If the firm acted as an underwriter in a recent public offering of the security being recommended
• C. If the firm participated in the selling group for a recent public offering of a security
• D. If partners of the firm hold options or warrants to buy the security being recommended

Correct Answer: D

Explanation:

D. Advertisements that include recommendations of the firm do not need to include whether a firm acted as a selling group since selling group members have no financial risk.