NASAA Dishonest Practices - Broker-Dealers and Agents

What this video covers

• Why the NASAA list of prohibited practices is illustrative, not exhaustive, and how to avoid the exam trap of eliminating answer choices just because a specific conduct isn't explicitly listed
• How unauthorized trading differs from unauthorized discretion, and the critical exception for time-and-price-only orders
• The exact timing rules for margin agreements and hypothecation consent: execute first, then obtain written agreement promptly after
• What churning is, why it must be excessive relative to financial resources and account character, and how it violates Regulation Best Interest (Reg BI)
• Why guaranteeing against loss is strictly prohibited regardless of investment safety, guarantee form, or family relationship
• How to distinguish broker-dealer violations like failing to segregate, market manipulation, and control relationship disclosures from agent-specific violations like selling away, fictitious accounts, and commission splitting
• The absolute prohibition on agents borrowing from or lending to customers, with zero exceptions for family members, friends, or any other relationship