SIE (Securities Industry Essentials) 2025 – 400 Free Practice Questions to Pass the Exam!

Question: 1 / 400

Under what conditions may an agent share in the profits and losses of a customer's account?

At any time, as long as the broker-dealer approves

Only if the sharing is in direct proportion to the financial contribution made by the agent to the account

An agent may share in the profits and losses of a customer's account only if the sharing is in direct proportion to the financial contribution made by the agent to the account. This means that the agent must have a financial stake in the account in order to share in its profits and losses. Options A and C are incorrect because they do not specify any conditions for profit and loss sharing. Option D is incorrect because there are circumstances, such as in option B, under which this is allowed.

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If the customer is a family member of the agent

There are no circumstances under which this is allowed

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