Question

Lincoln Investments is registered as a broker-dealer and as an investment adviser. When opening an account for a customer, the firm has the customer sign a statement that discloses that transactions recommended by Lincoln Advisers are effected through Lincoln Brokerage, which earns commissions on those trades. Obtaining the signed statement would NOT be required if:A. Lincoln Advisers recommends the purchase of a security and Lincoln Brokerage sells the customer that security out of its inventoryB. Lincoln Advisers recommends the sale of a security and Lincoln Brokerage executes the sale acting as agent in the OTC marketC. the customer effects a trade through Lincoln Brokerage that was not recommended by Lincoln AdvisersD. the customer signs a waiver covering all disclosures that are legally required

Answer 1

the customer effects a trade through Lincoln Brokerage that was not recommended by Lincoln Advisers

Step-by-step explanation:

Broker-dealer definition varies. In the USA, it is regarded as an individual person who is involved in the business of effecting transactions in securities for the accounts of others or for its own account.

An investment adviser is an individual that is responsible for the compensation and as part of a regular business, engages in the business of advising others on the value of securities.