Question

"A registered representative ("RR") manages a corporate account. The corporation recently elected a new CEO who contacts the "RR" and gives trade instructions. Which statement is TRUE? The trade should be:"

Answer 1

Answer: D. entered once the "RR" verifies that the CEO is an authorized trader in the account

Step-by-step explanation:

The registered representative must only trade on a corporate account on orders given by a person that is authorised to do so to avoid any mismanagement.

The people authorized to do so will be listed in a Corporate Resolution issued by the Board of Directors of the company or relevant stakeholders.

The registered representative would need to check this resolution first and if they find the new CEO listed in it as authorized to make trades, the registered representative will then enter the trade.