A Broker Has Transferred Stock Held in His Own Name

question 8

Multiple Choice

A broker has transferred stock held in his own name in order to fill a request from a client and made a profit in doing so. Has the broker breached any duties to his client in this instance?

• A) No, the broker is entitled to earn a profit from the services he provides to his client.
• B) Yes, the broker has a conflict of interest requiring disclosure and consent.
• C) Yes, the broker breached his duty of confidentiality.
• D) No, the broker is completely compliant with his fiduciary duties.

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Definitions:

New Facilities

Refers to the construction or opening of new physical buildings or infrastructure for business or operational use.

Break-Even

is a financial term indicating the point at which costs or expenses and revenue are equal, resulting in no net loss or gain.

Total Revenue

The entire amount of income generated by the sale of goods or services before any deductions are made.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, essential for budgeting and financial planning.