SIE Exam Question 820: Answer and Explanation

Question: 820

Which of the following is referred to as the "know your customer" rule, which states that a customer's situation must be suitable for any investment being made?

• A. Securities Act Rule 144
• B. Securities Act Rule 405
• C. Securities Act Rule 433
• D. Securities Act Rule 506

Correct Answer: B

Explanation:

Securities Act Rule 405 is referred to as the "know your customer" rule, which states that a customer's situation must be suitable for any investment being made.