Finra
Which of the following actions violates FINRA rules regarding private securities transactions (selling away)?
Selling away occurs when a registered representative engages in securities transactions outside the scope of their employment without written approval from their firm. This violates FINRA Rule 3280. Representatives must
Complete Analysis & Legal Rationale
Selling away occurs when a registered representative engages in securities transactions outside the scope of their employment without written approval from their firm. This violates FINRA Rule 3280. Representatives must notify their firm and receive written permission before engaging in any private securities transactions.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Official Standard: Primary source referenced in the explanation (FINRA Rule 3280). Verify before launch.