Noah Scruples Is a Registered Representative with CanDo Broker-Dealers

Noah Scruples is a registered representative with CanDo Broker-Dealers. A client calls and wants Noah to purchase shares of a mutual fund the client has read about. CanDo is not authorized by this particular fund to effect purchases or sales of the fund shares. Can Noah execute the order anyway?

A) No. This would be considered money laundering, which is highly illegal.
B) No. This is a prohibited practice known as selling away.
C) No. This is a prohibited practice known as front running.
D) Yes. Since this is an unsolicited trade, Noah can execute the transaction on behalf of his client.

Correct Answer:

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