Series 7 Exam Prep 10, Discretionary Accounts and Trading Authority

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The three elements that define a discretionary trade: Asset, Action, and Amount (the three 'A's'). - The critical difference between full discretion, which requires written authorization, and time and price discretion, which can be granted verbally for one day. - The two essential requirements for establishing a discretionary account: the client's prior written power of attorney and a principal's written acceptance. - The supervisory responsibilities of a principal, including the frequent review of discretionary account activity to prevent churning. - Common Series 7 exam traps, such as confusing a client's verbal instructions with the legally required written authorization for discretionary trading. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep