Excessive trading is:

A. acceptable if the client is young enough to recover from any losses before retiring.
B. acceptable if the firm mandates that an agent trade excessively in clients' accounts to generate commissions, so long as the agent does not lose any money.
C. not acceptable - agents who trade excessively are committing fraudulent activity and will be disciplined by the Administrator.
D. acceptable if the agent is trying to "paint the tape".

Correct answer: C
A, B and are false, as excessive trading is known as churning and is generally not acceptable. D is incorrect, because "painting the tape" is where someone is trying to create the illusion of artificial market activity by simultaneously buying and selling stock.

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