Excessively Trading a Customers Account to Increase a Stockbrokers Commission

question 122

Multiple Choice

Excessively trading a customers account to increase a stockbrokers commission income is

• A) an acceptable method of timing the market to increase rates of return.
• B) called churning which is an illegal practice.
• C) probably unethical but yet is acceptable by the securities industry.
• D) permitted provided that the customer does not object.

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Definitions:

Relativism

The doctrine that knowledge, truth, and morality exist in relation to culture, society, or historical context, and are not absolute.

Philosophical Position

A fundamental viewpoint or stance on philosophical issues, reflecting deep theoretical beliefs.

World Oil Reserves

The estimated quantities of crude oil in the ground that are recoverable under current economic and technological conditions.

Critical Thinking

An approach to reasoning that requires the thinker to be aware of their own biases and assumptions in order to evaluate arguments and evidence objectively.