SIE Exam Question 103: Answer and Explanation

Question: 103

_______________ trading authority is when a person other than the account holder may invest without consulting the account holder about the price, amount, or type of security or the timing of the trades that are placed for the account.

• A. Discretionary
• B. Nondiscretionary
• C. Privileged
• D. Absolute

Correct Answer: A

Explanation:

Discretionary trading authority is when a person other than the account holder may invest without consulting the account holder about the price, amount, or type of security or the timing of the trades that are placed for the account.