Finra Exam Series-6 Topic 10 Question 70 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 70
Topic #: 10

Ms. Newbie's client, Mr. Nomad, has decided that he wants to go on an extended backpack trip through the Amazon. Since he'll be out of touch, he has given a friend of his limited power attorney to act on his behalf. Based on this, Mr. Nomad's friend can:

i. present Ms. Newbie with an order to purchase securities on Mr. Nomad's behalf.

ii. present Ms. Newbie with an order to sell securities on Mr. Nomad's behalf.

iii. request a check be issued to him so that he can send Mr. Nomad some money.

AI only

BI and II only

CI, II, and III

Dnone of the above. Only a relative can hold a power of attorney to engage in financial transactions for the grantor.

Show Suggested Answer

Suggested Answer: B

Mr. Nomad's friend can engage in the activities described in Selections I and II only. A limited power of attorney gives Mr. Nomad's friend the authority to buy and sell securities on Mr. Nomad's behalf, but not to make any cash withdrawals. He would need a full power of attorney to be able to do so.

by Quentin at Jan 26, 2024, 09:58 AM

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