Eduardo Was a Licensed Stock Broker in the State of New

question 82

Multiple Choice

Eduardo was a licensed stock broker in the state of New York.Two years ago,he suggested to his client James that he invest his entire Individual Retirement Rollover account valued at $800,000 into the stock of a high technology company with strong growth potential.After the trade was conducted,James became the owner of several thousand shares.However,the company faltered during a deep recession,and the value of James's holdings decreased to less than ¼ of the purchase value.He decided to sue Eduardo for providing what he considered to be bad advice,and won a hefty sum of money.Eduardo lost his job with a major financial services company,and eventually lost his license to sell investments.Eduardo may have benefited from ___________________.

• A)better employer.
• B)product liability insurance.
• C)professional liability insurance.
• D)agreeing to pay James the commission he received from the original sale.

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Definitions:

Concern

The feeling of worry, interest, or care about someone or something.

Authoritarian

Relating to a governing or leadership style marked by absolute or blind obedience to authority, often at the expense of personal freedom.

Parent-To-Child Communication

The process of conveying information, feelings, and instructions between a parent and their offspring, crucial for emotional and intellectual development.

Empathy

Being able to comprehend and sympathize with another individual's feelings, putting oneself in their shoes.