An Investment Manager Directs a Certain Client's Orders to a Certain

question 38

Multiple Choice

An investment manager directs a certain client's orders to a certain broker for execution in exchange for research from the broker. This arrangement is referred to as a:

• A)Soft dollar arrangement
• B)Best effort arrangement
• C)Position trading
• D)Private placement
• E)Commission trades

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Definitions:

Ratification

The action of officially approving or confirming an agreement or act, making it valid.

Apparent Authority

Authority as suggested to a third party by the conduct of a principal; may exist even when there is no actual authority.

Real Estate Salesman

A professional licensed to negotiate and arrange real estate sales; works under a broker's supervision.

Computer Programmer

A professional who writes and tests code that allows computer applications and software programs to function.