What must a broker disclose to clients?

A broker is required to disclose various critical information to clients to ensure transparency and maintain a fiduciary duty. Among the options, the requirement to disclose personal share sales is significant because it highlights any potential conflicts of interest. When a broker sells shares they own, it can impact their recommendations or the perception of their advice, making it essential for clients to be aware of such transactions.

While other information such as projected market trends, a client's financial status, and transaction costs are essential components of brokerage practices, they may not directly relate to the broker's personal interests in the same way. Disclosing personal share sales ensures that clients can assess the motivations behind the broker's recommendations and make more informed investment decisions. This level of disclosure is integral to maintaining trust and ensuring ethical standards in the broker-client relationship.