Question

The USA prohibits which of the following?

I. Agents exercising discretion in discretionary accounts.
II. BDs charging larger than ordinary commissions on certain transactions
III. Agents soliciting orders for unregistered nonexempt securities.

A) I, II, and III
B) II and III
C) I and II
D) III only

Answer 1

The USA prohibits brokers-dealers charging larger than ordinary commissions on certain transactions and agents soliciting orders for unregistered nonexempt securities.

Step-by-step explanation:

The USA prohibits II and III.

II refers to BDs (brokers-dealers) charging larger than ordinary commissions on certain transactions. This is prohibited by the USA as it prevents unfair practices in the securities market.

III refers to agents soliciting orders for unregistered nonexempt securities. The USA prohibits this to ensure that agents are not involved in the sale of illegal or risky securities.