Question

It would be considered a prohibited activity for an agent to engage in any of the following activities EXCEPT:

A) sharing in profits of an account as a reward for the agent's recommendations exceeding the S&P 500.
B) failing to record exempt transactions on the broker-dealer's books and records.
C) executing a transaction in a nonexempt security in a discretionary account.
D) trading in the account of a conservative client exclusively in initial public offerings with proper trading authorization from the client.

Answer 1

B. failing to record exempt transactions on the broker-dealer's books and records.

Step-by-step explanation:

You must record the transactions.