Question

an agent of a broker-dealer wishes to create a website to solicit securities business from customers. based on each customer's reponses to questions asked, appropriate investment recommendations will be made. which statement are true?

Answer 1

The following statements are true:

• The broker-dealer must review and approve the content of the website

• The broker-dealer must be registered in each State where a customer responds to the website

• The agent must be registered in each State where a customer responds to the website

Explanation:

• An agent of a broker-dealer wishes to create a website to solicit securities business from customers based on each customer's response to questions asked, appropriate investment recommendation will be made.
• The statement which is not true under the given conditions is: "The Administrator must review and approve the content of the website." because the broker-dealer has to approve the content of the website.
• These recommendations which are discussed above are for the benefit and will ensure the safety and prevent the damage.