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You Are a Registered Agent with a Large Brokerage Firm

Question 166

Multiple Choice

You are a registered agent with a large brokerage firm. Your client is a very busy woman. She is interested in purchasing 500 shares of Google, but she thinks this morning's opening price is too high. She's going to be in meetings and then on a transatlantic flight. She wants the purchase to take place today because she believes Google's price is just going to keep rising with only the occasional daily ups and downs. She wants you to use your discretion and try to get her the best price for the stock in today's trading session. Which of the following statements are true?


A) You have to tell her that you can't do this without a signed discretionary authorization from her, and there's none on file.
B) You tell her that you can do this for her, but only if you execute it as a margin transaction.
C) You tell her you can enter it for her as a "market not held" order.
D) You tell her to have her secretary type up a discretionary authorization for her to sign and drop in the mail before she boards the plane. As long as the written authorization is in the mail, you can place the order.

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