Question

An agent of a broker-dealer publishes a web page that offers a free suitability determination to each customer that fills out a form electronically. Furthermore, if the customer agrees to open an account, the site states that: "The first 10 trades will be free."
Which statements are TRUE regarding this communication?
I. To publish this web page, the broker-dealer must be registered in each State where a customer completes the suitability determination
II. To publish this web page, the broker-dealer is not required to be registered in each State where a customer completes the suitability determination
III. To publish this web page, the agent must be registered in each State where a customer completes the suitability determination
IV. To publish this web page, the agent is not required to be registered in each State where a customer completes the suitability determination
A. I and III
B. I and IV
C. II and III
D. II and IV

Answer 1

The correct answer is A: I. To publish this web page, the broker-dealer must be registered in each State where a customer completes the suitability determination. III. To publish this web page, the agent must be registered in each State where a customer completes the suitability determination

Further Explanation:

The ten free trades that are given if a customer opens an account has no bearing on the new account holder. Since they are opening an account, they will eventually be charged for the next trades as soon as the contract starts.

Since the communication is specific to certain areas and states and not just a "general" internet connection/communication, there are guidelines that must be followed.

The broker-dealer will have to be legally registered in every state that a customer fills out and completes the form. This also applies to the agent, they also must be registered in every state that a customer lives that fills out and completes the suitability determination.

Learn more about electronic forms at https://brainly.com/question/2404107

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