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Business, 14.04.2020 19:16 IntellTanito

An agent of a broker-dealer is approached by the manager of a local bank, who tells that agent the following: "If you have any customers who want an extremely safe investment, you can sell them CDs issued by our bank and we will pay you a $50 referral fee for each completed sale." Which statement is TRUE about the agent engaging in this activity?A. This is permitted because the CD is an exempt security
B. This is an unethical activity known as selling away unless the agent obtains written permission of his or her firm to sell the bank's CDs
C. This is an illegal activity because agents are prohibited by law from selling away from their employing broker-dealer
D. This is permitted because the agent is only receiving nominal compensation for each CD sold

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