Question

A BD used by an IA for execution of trades announces a commission discount for placing at least 500 trades per month. The IA wants to get the discount for its clients, but typically places about 475 trades per month. The best practices for the IA to get the discount is to increase trading:______A) in the account of the IAB) equally throughout its clienteleC) proportionally throughout its clienteleD) only in the accounts that already trade frequently

Answer 1

Answer: A. in the account of the IA

Explanation:

Here,

IA = investment adviser

BD = broker-dealer

In this scenario, the investment adviser want to get discount for its client. The best option for investment adviser to get discount for its client would be to increase trading in the account of the investment adviser.