SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 29: Answer and Explanation

Question: 29

Which of the following is not allowed as a consideration of compensation under FINRA Rule 2121 – Fair Prices and Commissions?

• A. Occupation of the customer
• B. Type of Security
• C. Price
• D. Total monetary size of the transaction

Correct Answer: A

Explanation:

A: Choice A is correct because the customer's occupation is not included in Rule 2121 as a relevant factor in determining compensation received from the customer. Choices B, C, and D are incorrect because they are included in Rule 2121 as relevant factors in determining compensation.