SIE Overview of the Regulatory Framework Question 2: Answer and Explanation

Question: 2

Which of the following may only be done by a person registered with FINRA?

• A. Inviting members of the public to a meeting for which the firm is responsible
• B. Asking whether a member of the public is interested in reviewing possible investments with a registered person of the firm
• C. Encouraging a person to buy or sell a security
• D. Asking whether a member of the public is interested in receiving printed materials about investments

Correct Answer: C

Explanation:

C: Only a person registered with FINRA, when engaged by a FINRA member firm and serving under an appropriately registered supervisor, may encourage a person to buy or sell a security. Choices A, B, and D may be done by an unregistered person without close supervision.