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   Suitability Rules
   















 

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Suitability Rules

Principles required by the Securities and Exchange Commission and enforced by securities exchanges that attempt to ensure that securities salespeople do not solicit inappropriate business from individuals who are unable to make informed decisions about risk. Individuals who may be qualified to engage in certain transactions may not be encouraged to engage in other types or in numbers of transactions which may not be suitable given their capacity to accept risk, their net worth, and other aspects of their personal and financial situation.

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