To open an options account the customer must be sent the options Disclosure Document

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When opening an options account the customer must return the signed options agreement?
Who approves the opening of a customer's option account?
Which of the following procedures are required to open and maintain an options account?
When must the options Disclosure Document Odd be furnished to a customer quizlet?

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Question	Answer
A customer's "education" is required information on a New Account Form: T/F	FALSE ("occupation" is needed)
A New Account cannot be opened for a customer if they refuse to disclose D.O.B. and/or SSN/Tax ID: T/F	TRUE (both are part of the 4 needed: Name, Address, DOB, SSN)
A marriage certificate can be used to verify a new customer's identity: T/F	FALSE (passport, driver's license, and military ID are valid for verification)
Government-issued ID is required for New Corporate Accounts: T/F	TRUE (e.g. certified articles of incorporation, State-Issued business license)
Member firms must verify the validity of government-issued IDs: T/F	FALSE (though one should exercise good judgement in determining if they are "fake")
For IRS reporting purposes on a joint account, only one participant's SSN is required: T/F	TRUE (the "New Account Form" generally requires all SSNs)
For opening a cash account, a customer's signature is required on the New Account Form: T/F	FALSE (the registered rep's signature is required, i.e. if it's done over the phone)
SIPC contact information must be provided to the customer before or upon opening the account and " " thereafter	ANNUALLY
What critical info is required on a new acct form?	•Customer Name; •Address; •Social Security Number or Tax I.D. Number; and •Date of Birth.
In order to open a new account for a customer, the customer’s name, date of birth, address and tax identification number must be:	obtained prior to account opening,independently verified within a reasonable time before or after account opening
What information is needed to open a new cash account for a customer?	the citizenship of the customer, whether the customer is an officer or director of a publicly held company, whether the customer is an employee of another broker-dealer
Which of the following signatures must appear on the New Account Form?	Registered Representative, Manager or Principal, customer DOES NOT need to sign
When must Customers must be given information about SIPC:	at, or prior to, account opening
If an investor wishes to open a margin account, which of the following paperwork is customarily completed?	New Account Form Hypothecation Agreement Loan Consent Agreement Credit Agreement
To determine the suitability of recommendations made to a customer, inquiry should be made about?	Statement objectives Investment experience Financial situation Financial needs
Under FINRA rules, a registered representative must obtain and retain which of the following information relating to the customer's account?	Customer Address Country of Citizenship Financial Status
The definition of a "pattern day trader" is a person who effects at least	4 day trades in a 5 business day period
Which of the following customer information is required to determine suitability for an account that will engage in day trading?	employment status, marital status, tax status
“red-flags” that are usually unsuitable for seniors?	Variable annuities Structured products Mortgaging home equity for investment purposes Using retirement savings to invest in high-risk investments
A customer must be sent what document at, or prior to, opening an options account?	options disclosure document
A customer must sign and return which of the following documents within 15 days after opening an options account?	options agreement
Under FINRA rules, initial approval of new accounts must be performed, in writing, by the:	branch manager
Approval of new accounts for MSRB member firms can be performed by the:	Branch Office Manager Municipal Securities Principal General Securities Principal
Initial approval of options accounts is performed by the:	Branch Office Manager, Registered Options Principal
Which of following documents are unique to margin accounts?	margin agreement loan consent agreement credit disclosure statement
A registered representative is allowed to choose what without requiring written trading authorization from the customer?	Price and time
•If an employee of another NYSE member firm wishes to open an account, the NYSE requires that:	◦Prior written approval be obtained from the employer member; and ◦Duplicate confirmations and statements be sent to the employer member
•If an employee of an NYSE member firm wishes to open an account at a non-NYSE member financial services firm, or an account is to be opened where this employee has a financial interest, then:	◦Prior written consent must be obtained from the NYSE member employer; and ◦Duplicate confirmations and statements must be sent to the NYSE employer member
•If an employee of another municipal securities firm wishes to open an account, then:	◦Prior written notice must be given to the municipal employer; ◦Duplicate confirmations must be sent to the municipal employer
•If an employee of another member firm wishes to open an options account, then:	◦Prior written permission must be obtained from the employer member; and ◦Duplicate confirmations must be sent to the employer member.
What accounts consist of a Fiduciary?	Trust, Custodian Guardian
Can fiduciary accounts be opened as a margin acct?	No, unless special permission is given
If a customer wishes to open an account for a minor without additional documentation, the account must be opened as a:	Cash acct
Interest income in a custodian account is reported on the tax return of the:	Minor
To send trade confirmations to a person holding a power of attorney over a customer's account, written approval must be obtained from the:	Customer
If there is no trading activity in a customer's account, a statement must be mailed:	quarterly
A customer is traveling to Tibet and directs your firm to hold his mail. Under FINRA rules, the mail can be held for:	3 months international, 2 months domestic
What percent margin are for a Reg T long and short stock?	50%
What percent margin are for minimum maitenence margin for a long and short stock	25% for long, 30% short
What constitutes a pattern day trader?	4 or more day trades in a 5 business day period
Regulation T controls credit on securities from:	Broker to customer
Regulation T controls credit on securities from:	bank to broker
The maximum amount of customer securities that can be rehypothecated by a broker is:	140%
Under Regulation T, an extension for payment may be requested on:	Settlement + 2
To buy a listed stock in a margin account requires a deposit of:	Regulation T requires that 50% of the purchase amount, based on the price of the trade, be deposited. The closing price has no effect on the deposit amount required.
What is the minumum deposit required to open a margin acct?	$2,000
The formula for equity in a long margin account is:	Long market value - debit balance= Equity
How do you compute an SMA Margin?	50% off the long market value- debit=sma
How do you compute an SMA Margin on a short stock?	Equity - 50% of market value=sma value
What is the formula for equity in a Short Margin Account?	credit balance-short market value=equity
The formula for equity in a combined margin account is:	long market value - short market value + credit balance - debit balance
Regulation T requires settlement of trades When?	Proptly but no later than S+2
Regutlation U controls the extension of credit from ___ to ___	bank to firm
Regulation T applies to which securities	Non-exempt
Long margin minimum maintenance requirment?	25%
Short margin minim maintenance requirement?	30%
Buying power comes from the creation of?	excess equity in the account
How much SMA can be withdrawn?	100% and can be used to meet reg T

When opening an options account the customer must return the signed options agreement?

Customer returns signed options agreement within 15 days The customer has 15 calendar days from account opening to return the signed options agreement. If they do not return it in time, the account will be restricted to only closing transactions.

Who approves the opening of a customer's option account?

Before you can trade options, your broker must approve your brokerage account for options trading. In order to be approved for options trading, you will need to fill out your broker's options agreement.

Which of the following procedures are required to open and maintain an options account?

To open an options account, a customer must give detailed financial disclosure. Inquiry must be made as to the customer's investment objective, investment experience, financial situation and financial needs.

When must the options Disclosure Document Odd be furnished to a customer quizlet?

Require an Options Disclosure Document to be delivered at or prior to the time the material is sent to the client. must be received by the firm no later than 15 days following the firm's approval of the account for options trading. 1.

To open an options account the customer must be sent the options Disclosure Document

When opening an options account the customer must return the signed options agreement?

Who approves the opening of a customer's option account?

Which of the following procedures are required to open and maintain an options account?

When must the options Disclosure Document Odd be furnished to a customer quizlet?

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