The ________ states that broker/dealers should be subject to strict standards because they are advertising themselves as market professionals.
Click on the arrows to vote for the correct answer
A. B. C. D. E.D
The shingle theory states that broker/dealers should be subject to strict standards because they are "hanging out their shingles," or, advertising themselves as market professionals. The theory states that inherent in the relationship between brokers/dealers and their clients is the representation that the customer will be dealt with fairly. Brokers/dealers are in a position to exploit their customers' trust and ignorance and therefore they are held to a higher duty of care.