A:

A. When the transaction is less than $5,000
B. When the IA decides only how many shares to sell
C. When the client tells the IA which stock he or she wants to sell
D. When the IA decides only the time and/or price to complete the sale






The correct answer is "d": time and price only. If the IA were to decide which security to sell or the number of shares to sell before receiving written discretionary authority, it would be considered an unethical business practice.



RELATED FAQS

  1. What are examples of businesses that exhibit social responsibility?

    Learn what corporate social responsibility means and find examples of socially responsible businesses that contribute measurably ...
  2. Why is social responsibility important to a business?

    Take social responsibility seriously, and your business could benefit from happier, more productive staff members while helping ...
  3. Why are business ethics important?

    Learn why ethics are an integral aspect of management philosophy and how sound business ethics benefit business, both large ...
  4. How important are business ethics in running a profitable business?

    Learn how business ethics as a guiding philosophy within a company can have a drastic impact on long-term profitability and ...
RELATED TERMS
  1. Bad Faith Insurance

    An insurance company’s appalling or malicious refusal to pay ...
  2. UDAAP

    Misleading or harmful behaviors by those who offer financial ...
  3. Computer Crime Insurance

    An insurance policy that provides protection from crimes committed ...
  4. Duty Of Loyalty

    A director's responsibility to act at all times in the best interests ...
  5. Duty Of Care

    One of two primary fiduciary duties of directors, the duty of ...
  6. Adverse Domination

    A legal doctrine that allows regulators to bring litigation against ...

You May Also Like

Related Articles
  1. Investing Basics

    How Effective Is The Chinese Wall?

Trading Center