Series 7 - General Securities Representative Exam

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All of the following transactions are subject to the FINRA 5% policy EXCEPT

Riskless Transactions
A
Principal Transactions
B
Illiquid Transactions
C
Agency Transactions
D
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Explanations

The 5% markup guideline applies to all except illiquid transactions. Due to the cost of finding liquidity for something, a broker dealer's markup beyond 5% could be justifiable; as it is with extremely small dollar amount trades

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