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Why Would a Broker Whom Is Engaged in Churning Be

Question 34

Multiple Choice

Why would a broker whom is engaged in churning be at a conflict of interest with their client?


A) Investing in risky securities is counter to the interest of a risk averse investor.
B) The broker is trading to generate income for themselves and not returns for the investor.
C) The broker isn't performing the due diligence necessary to provide accurate advice.
D) The broker knows that the client has signed an agency contract agreeing not to sue.
E) The broker is required to inform the client before buying securities created by their firm.

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