Which of the following are considered to be discretionary orders under the FINRA Rules of Fair Practice?
A)a customer instructs her registered representative to purchase stock in XYZ whenever the representative deems the price to be right
B)a customer instructs her registered representative to sell 300 shares of ABC that is long in her account whenever the representative thinks the time and price are appropriate
C)a customer gives a member firm a check for $25,000 and instructs the firm to purchase bank stocks and insurance company stocks when the prices appear to be favorable
D)both A and C

Question

Quizplus · Accepted Answer

both A and C. Choice A is discretionary because the customer did not specify a quantity to purchase. Choice B only provides discretion about timing and thus is not discretionary. Choice C is clearly discretionary.

Which of the Following Are Considered to Be Discretionary Orders