Series 7 Exam Question 255: Answer and Explanation

Question: 255

A customer, without giving written authorization, may permit a registered representative to exercise their judgment as to

  • A. whether to buy or sell
  • B. the security
  • C. the price and timing to enter the order
  • D. the number of shares

Correct Answer: C


C. Without having discretionary authority, registered representatives may not decide on whether to buy or sell, the security to purchase or sell, or the amount of shares or dollar amount to purchase for the customer. Registered representatives may, however, without written power of attorney, choose the price or timing of an order with the customer's verbal approval.

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