Which of the following is true?
A) Advice received from your broker is guaranteed to be accurate
B) Most brokerage agreement require disputes to be settled in a count of law
C) Arbitrage is the legal process of settling a case without a jury
D) The churning of a customer's account is a recommended brokerage activity
E) Commission brokers always have a potential conflict of interest with their clients

Question

Quizplus · Accepted Answer

Commission brokers earn their income through commissions on the trades they execute for clients. This payment structure can create a potential conflict of interest, as the broker might be incentivized to encourage more trading, regardless of whether it's in the best interest of the client, to generate higher commissions.

Which of the Following Is True