Finra
A registered representative promises a client "I'll buy back your shares at $50 if the stock drops." This practice is:
Never guarantee against loss or promise to buy back securities at any price.
Complete Analysis & Legal Rationale
Guaranteeing to repurchase shares at a specific price is prohibited under FINRA rules. This constitutes a guarantee against loss, which is fraudulent because it eliminates the investment risk that investors should understand and accept.
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:
This is not customer service; it is a prohibited practice.
Matches the verified teaching point in the explanation.
No waiver can make a prohibited practice permissible.
There is no requirement to guarantee against losses.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.