A Series 7 and Series 24 Exam Question on Discretionary Accounts

Here is a good question on a discretionary account that shows up on the Series 7 exam and series 24 exams:

An investor has given their representative the authority to purchase and sell securities in their account without first consulting them. Which of the following is not true?

A. The authority must be evidenced in writing
B. The account must be reviewed more frequently
C. All transactions must be approved by a principal, prior to execution
D. The investor is bound by the transactions made by the representative


C) All of the choices listed are correct except the transaction do not have to be approved by a principal prior to execution.

Take some free series 7 questions on our site at: http://www.securitiesce.com/web/pages/series7/index.php

Take some free series 24 questions on our site at:
http://www.securitiesce.com/web/pages/series24/index.php