SIE Exam Question 684: Answer and Explanation

Question: 684

Which of the following is an investor protection requirement that obligates a broker-dealer to exercise reasonable care to execute a customer's order in a way to obtain the most advantageous terms for the customer?

• A. Best execution
• B. Price execution
• C. Price improvement
• D. Prudent man rule

Correct Answer: A

Explanation:

"Best execution" is an investor protection requirement that obligates a broker-dealer to exercise reasonable care to execute a customer's order in a way to obtain the most advantageous terms for the customer.