Question

All of the following are prohibited practices under FINRA rules EXCEPT: A selling enough mutual funds to a customer to obtain a breakpoint B backing away from a quote C interpositioning another firm between a customer and market maker D withholding new issues from sale to the public

Answer 1

Answer:

The correct answer is letter "A": selling enough mutual funds to a customer to obtain a breakpoint.

Explanation:

The Financial Industry Regulatory Authority (FINRA) is a non-governmental institution that rules brokers and dealers activities in the United States. FINRA aims to protect private investments from bad practices and fraud having the authority to impose penalties whenever necessary.

Brokers can send different assets -such a mutual funds or stocks- on behalf of investors to come to a breakpoint and start generating profits from the trade.

Answer 2

Answer:

Option A is correct

Explanation:

Breakpoint are the investment packages at which agents offer investors sales charge discount that is the more you invest, the greater the discount on sales charge which the investor is entitled to.