Question

An investor asks a registered representative to underline the most important facts found in a preliminary prospectus. The registered representative:

a. May not do this since it violates federal securities laws
b. May do this with the approval of a principal at the firm
c. May do this with the approval of FINRA
d. May do this without restrictions or approvals

Answer 1

Answer: The correct answer is "a. May not do this since it violates federal securities laws".

Explanation: The registered representative: May not do this since it violates federal securities laws.

As much as the registered representative has the approval of a company director or FINRA, he cannot underline the most important facts found in a preliminary prospectus because he would go against federal securities laws.