SIE Exam Question 521: Answer and Explanation

Question: 521

As it relates to a member firm conducting business with the public, all of the following are violations, except:

• A. Failing to execute a customer's order for a speculative security.
• B. Charging a customer a larger than normal commission for executing a specific order.
• C. Printing "FINRA" in large type on business cards.
• D. Stating that a new issue has been approved for sale by the SEC.

Correct Answer: B

Explanation:

B: A member firm may charge a customer a larger than ordinary commission for the execution of a specific order so long as it is disclosed to the customer. A member firm must always execute a customer's order.