Question

FINRA's fair and reasonable compensation, also known as the FINRA 5% rule, considers which of the following:

A) Sales charges, management fees, and trading commissions.
B) Investor demographics, economic conditions, and market volatility.
C) Liquidity, capitalization, and market share.
D) Regulatory compliance, accounting practices, and disclosure policies.

Answer 1

The FINRA 5% rule, also known as FINRA's fair and reasonable compensation, considers sales charges, management fees, and trading commissions.

Step-by-step explanation:

The FINRA 5% rule, also known as FINRA's fair and reasonable compensation, considers Sales charges, management fees, and trading commissions. This rule focuses on the compensation related to the sale of financial products. It ensures that investors are not overcharged for investment products and services.