20.5k views
4 votes
A customer instructs a registered representative to "Buy 100 shares of IBM whenever you think the price is right." Under industry regulations this order:

User Claud
by
4.8k points

1 Answer

0 votes

Answer: B. can be accepted as given

Step-by-step explanation:

Under Industry regulations, this order would not have been accepted immediately had it been for instance, discretionary. A Discretionary order is one where the investor or representative tries to invest in, on behalf of their clients, securities that would align with their interests. They would however need a written power of attorney from the client to be able to do so.

However, if the client has already stated the security to be bought as well as the number, the representative can accept it as it is given without the need for a power of attorney. All that is left for the representative is to choose the time and execute best price.

User Drublic
by
4.1k points