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Finra Series-63 Exam - Topic 2 Question 7 Discussion

Which of the following entities is subject to be accused of churning?I . investment advisersII . investment adviser representativesIII . broker-dealersIV . agents
D) I, II, III, and IV
A) II and IV only
B) I and III only
C) II, III, and IV only

Finra Series-63 Exam - Topic 2 Question 7 Discussion

Actual exam question for Finra's Series-63 exam
Question #: 7
Topic #: 2
[All Series-63 Questions]

Which of the following entities is subject to be accused of churning?

I . investment advisers

II . investment adviser representatives

III . broker-dealers

IV . agents

Show Suggested Answer Hide Answer
Suggested Answer: D

The firm will be expected to provide all of the above-sales and advertising materials to be used in the offering, the agreement between the issuing firm and its underwriters, and the agreement among the underwriters themselves.


by Veronika at Mar 24, 2025, 12:02 PM

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Oliva
7 months ago
Wait, are you sure all of them can be accused?
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Titus
7 months ago
Definitely I, II, III, and IV!
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Lavonna
7 months ago
I think it's just broker-dealers and agents, right?
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Renay
7 months ago
I thought only investment advisers were at risk for that.
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Barney
8 months ago
Churning can apply to all those entities!
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Quentin
8 months ago
I thought only investment advisers and broker-dealers were relevant here, but now I'm second-guessing myself about the representatives and agents.
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Maricela
8 months ago
I feel like all four could potentially be accused of churning, but I can't recall the exact details.
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Lilli
8 months ago
I remember practicing a question about this, and I think it was just the broker-dealers and agents that were involved.
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Catalina
9 months ago
I think churning is mainly associated with broker-dealers, but I'm not sure if investment advisers can also be accused of it.
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Lacey
9 months ago
This is a tricky one. I'm not totally confident, but my best guess is that investment advisers, broker-dealers, and their representatives/agents can all potentially be accused of churning. I'll mark D just to be safe.
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Kate
9 months ago
Okay, I think I've got this. Churning is when a broker-dealer or investment adviser engages in excessive trading to generate commissions, right? So the entities that can be accused of it are the ones that have the ability to make trading decisions on behalf of clients. I'll go with C.
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Luz
9 months ago
Hmm, I'm a little unsure about this one. I know churning has to do with excessive trading, but I'm not totally clear on which specific entities can be accused of it. I'll have to think this through carefully.
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Staci
9 months ago
This question seems pretty straightforward. I think I know the answer, but I'll double-check the definitions of each entity just to be sure.
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Herschel
1 year ago
This question is as slippery as a greased pig. Better make sure I don't get caught up in any churning shenanigans!
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Gracie
1 year ago
Churning, huh? Sounds like a great workout routine. I'll have to try it out at the gym later.
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Kathryn
1 year ago
I'm going to have to study up on the regulations around churning before this exam. Wouldn't want to get caught churning by mistake!
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Bettina
1 year ago
Make sure to review the regulations carefully before the exam.
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Long
1 year ago
Investment advisers and agents can be accused of churning.
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Izetta
1 year ago
Make sure to review the regulations carefully before the exam.
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Cory
1 year ago
It's important to know the rules to avoid any issues.
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Silva
1 year ago
Investment advisers and broker-dealers can be accused of churning.
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Maile
1 year ago
It's important to know the rules to avoid any issues.
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Reid
1 year ago
Wow, I didn't realize agents could also be accused of churning. This is a tricky question!
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Aide
1 year ago
User 4: I'm not sure, but I think broker-dealers are definitely subject to be accused of churning.
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Samira
1 year ago
User 3: I would go with D) I, II, III, and IV.
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Janine
1 year ago
User 2: I agree, agents can also be accused of churning.
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Krissy
1 year ago
User 1: I think the answer is C) II, III, and IV only.
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Gretchen
1 year ago
Broker-dealers and investment advisers are the most likely to be accused of churning, so I think option B is the correct answer.
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Long
1 year ago
Why do you think that?
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Oretha
1 year ago
I disagree, I believe the answer is A) II and IV only.
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Long
1 year ago
I think the answer is C) II, III, and IV only.
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