Answer :
A broker-dealer must have a reasonable basis for believing that a series of recommended transactions are not excessive or unsuitable. This is called Quantitative suitability -- FINRA Rule 2111.
What does FINRA Rule 2111, Quantitative Suitability, mean?
The quantitative obligation is designed to curtail the practice of churning or making a lot of buy-and-sell trades to increase the broker's commissions. According to this, a succession of transactions may be inappropriate even if each one is appropriate when considered separately. The broker is required to take the investment profile into consideration when determining quantitative appropriateness.
This suitability requirement allowed the broker to recommend the security that offered him a higher commission or charge, which would naturally be paid by the customer if there were two equally acceptable securities to recommend to a client.
Learn more about the FINRA Rules with the help of the given link:
brainly.com/question/17257111
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