Which one of the following is a true statement regarding account executives?
A)They are generally not liable for client losses that result from their recommendations.
B)It is wise to allow an account executive to make investment decisions without the client's approval.
C)An account executive cannot buy and sell securities for clients and help them develop an investment program.
D)An account executive is not licensed to buy or sell securities for clients.
E)The arbitration clause allows clients to sue the brokerage firm that an account executive represents.

Question

Quizplus · Accepted Answer

Account executives, also known as brokers or financial advisors, are generally not held personally liable for client losses that result from their recommendations, provided they adhere to regulations and act in the client's best interest. This is because they are expected to provide professional advice based on their expertise and the information available at the time.

Which One of the Following Is a True Statement Regarding