One Problem Associated with Commission-Based Transactions Is That the Arrangement

question 8

Multiple Choice

One problem associated with commission-based transactions is that the arrangement provides

• A) greater costs to the investor.
• B) the temptation to recommend frequent changes in the investor's holdings.
• C) more commissions if the investor's portfolio appreciates in value.
• D) institutional investors a greater advantage over smaller investors.

---

Definitions:

Routine

A regular manner of procedure, a habitual sequence of actions or activities that one follows in a particular order, often contributing to efficiency or comfort.

Instrumental Activities

Tasks that allow an individual to live independently in a community, such as housekeeping, shopping, managing finances, cooking, and using transportation.

Daily Living

The routine activities that individuals do every day without needing assistance, including eating, bathing, dressing, etc.

Dependent Functioning

A state where an individual requires assistance from others for daily activities or tasks due to physical or cognitive limitations.