Claudia Is a Licensed Individual Who Buys or Sells Investment

question 34

Multiple Choice

Claudia is a licensed individual who buys or sells investment for her clients.Which of the following is not correct?

• A) She is an account executive.
• B) She should not use her discretion without her client's approval.
• C) She should focus on churning for her clients.
• D) She should provide information and advice to be used in evaluating potential investments.
• E) All of these are correct.

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Definitions:

Cash

A form of currency that includes physical bills and coins used in transactions.

Voting Shares

Shares that give the owner the right to vote on company matters, such as electing directors, at shareholder meetings.

Fair Value

Fair value is the estimated market price of an asset or liability, reflecting the amount at which an informed transaction could take place between willing parties.

Pushdown Accounting

An accounting method where the purchase price of an acquired entity is pushed down onto the acquired entity's financial statements.