Under MSRB rules, if/when opening a margin account, a RR discovers that the customer is employed at another BD, rep must

Notify the customer's employer in writing

Which is not true when a RR opens a new account for a customer

The cusotmer must sign the new account form

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SIE #3 Understanding Trading, Customer Accounts and Prohibited Activities

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Questions 11

Answers

1
A management company has an NAV of $10 and a POP of $12. The fund is a(an)
Open-end fund
Cannot be determined
UIT
Closed-end fund
2
Under MSRB rules, if/when opening a margin account, a RR discovers that the customer is employed at another BD, rep must
Notify the MSRB
Receive permission from the regulators to open the account
Receive permission from the customer's employer
Notify the customer's employer in writing
3
Which of the following is eligible to receive breakpoints
Partnerships
Corporations
Investment clubs
All of the above
4
Which is not true when a RR opens a new account for a customer
The cusotmer must sign the new account form
Firm must send a copy of the new account form within 30 days to customer
The registered principal must sign the new accunt form
The RR who introduced the new acount must be noted
5
Broker's transact business with all of the following EXCEPT:
Bank-dealers
Broker-dealers
Institutions
None of the above are exceptions
6
Which document(s) would be an indication an order was solicited, unsolicited, or discretionary?
Both A and B
Neither A nor B
Confirmation
Order ticket
7
When an investor enters an order to buy a put option, the order ticket would be labeled as a(n):
Opening purchase
Closing purchase
Closing sale
Opening sale
8
After an individual executes a rollover, the money cannot be rolled over again for at least:
30 days
60 days
No waiting perid
1 Year
9
A signature can be guaranteed by a:
Custodian
Trustee
Bank officer
Notary
10
Company pays a cash divdend, all of the following are true related to the company's balance sheet EXCEPT:
Assets decrease
Liabilities remain the same
Stockholders' equity remains the same
Working capital remains the same
11
An inestor selling a put option anticipates the premium will:
Increase
Decrease
Remain the same
Cannot be determined

SIE #3 Understanding Trading, Customer Accounts and Prohibited Activities Flashcards | StudBud