Type 4 regulated activity?

Type 4 regulated activity?

• A. Dealing in securities
• B. Leveraged FX trading
• C. Dealing in futures
• D. Advising on securities

Answer: (D)

Type 4 regulated activity is advising on securities. It covers giving investment recommendations, analyses, or opinions about the value, merits, or prospects of securities, or offering tailored guidance on whether a client should buy, hold, or sell a security. The emphasis is on counsel and guidance to a client, not on executing trades. That’s why advising on securities is the correct choice. The other activities involve carrying out trades or dealing in other markets (dealing in securities, dealing in futures, leveraged FX trading), which fall under different Type categories. For example, recommending a specific stock to a client is Type 4, while placing an order to buy that stock is Type 1.

Type 4 regulated activity is advising on securities. It covers giving investment recommendations, analyses, or opinions about the value, merits, or prospects of securities, or offering tailored guidance on whether a client should buy, hold, or sell a security. The emphasis is on counsel and guidance to a client, not on executing trades. That’s why advising on securities is the correct choice. The other activities involve carrying out trades or dealing in other markets (dealing in securities, dealing in futures, leveraged FX trading), which fall under different Type categories. For example, recommending a specific stock to a client is Type 4, while placing an order to buy that stock is Type 1.