The published rules of both the National Association of Securities Dealers (NASD) and the Securities and Exchange Commission (SEC) provide that a broker or dealer in the securities market may recommend the purchase of a security only when there is a reasonable basis for believing that the security is "suitable" for the customer.
80 Yale L.J. 1604-1635
Scholarly Commons Citation
Cohen, Stephen B., "The Suitability Rule and Economic Theory" (1971). Georgetown Law Faculty Publications and Other Works. Paper 1702.