SIE Exam Question 906: Answer and Explanation

Question: 906

In which of the following accounts does a broker have the right to make significant investment decisions without permission from, or consultation with, the account owner?

• A. Custodian account
• B. Discretionary account
• C. Non-discretionary account
• D. Non-custodian account

Correct Answer: B

Explanation:

In a discretionary account, a broker has the right to make significant investment decisions without permission from, or consultation with, the account owner.