SIE (Securities Industry Essentials) Practice Exam

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Under normal circumstances, a customer's breakpoint sale on a mutual fund purchase is prohibited unless:

the transaction is less than $1,000
the customer receives both prior written disclosure and consent from the BD
the customer pays in installments
the mutual fund is an index fund

The correct answer is: the customer receives both prior written disclosure and consent from the BD

Under normal circumstances, a customer's breakpoint sale on a mutual fund purchase is prohibited unless the customer receives both prior written disclosure and consent from the broker-dealer. This ensures that the customer is fully aware of any fees or other charges that may be associated with the purchase, and has given their consent to move forward with the transaction. Options A, C, and D are incorrect because they do not address the requirement for prior written disclosure and consent from the BD.