Series 7 Exam Question 241: Answer and Explanation

Question: 241

Which of the following customer orders are discretionary?

I. Buy 1,000 shares of a growth company

II. Buy or sell 500 shares of LMN

III. Buy or sell as many shares of TUV as you think I can handle

• A. I and II
• B. II and III
• C. I and III
• D. I, II, and III

Correct Answer: D

Explanation:

D. All the Roman numeral choices listed would be considered a discretionary order and would require a written Power of Attorney signed by the customer in order to be accepted. To not need a Power of Attorney, the customer must provide or agree to the number of shares (or bonds), whether to buy or sell, and the specific security.