SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 31: Answer and Explanation

Question: 31

In FINRA Rule 2121 – Fair Prices and Commissions, 5 percent compensation is provided as which of the following?

• A. Minimum
• B. Maximum
• C. Guideline
• D. Absolute

Correct Answer: C

Explanation:

C: Choice C is correct because 5 percent is suggested as a guideline, allowing various listed factors to be taken into account. Choices A, B, and D are incorrect.