SIE Exam Question 820: Answer and Explanation

Question: 820

Which of the following is referred to as the "know your customer" rule, which states that a customer's situation must be suitable for any investment being made?

  • A. Securities Act Rule 144
  • B. Securities Act Rule 405
  • C. Securities Act Rule 433
  • D. Securities Act Rule 506

Correct Answer: B

Explanation:

Securities Act Rule 405 is referred to as the "know your customer" rule, which states that a customer's situation must be suitable for any investment being made.

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