SIE Unit 6

Question 1

Hypothecation

Answer 1

The pledging of customer securities as collateral for margin loans

Question 2

Wrap Account

Answer 2

Firm offering is both a broker-dealer and investment advisor; account fee covers both transactions and advice

Question 3

Who Sets Margin Maintenance Requirements

Answer 3

FINRA

Question 4

What Can Be Used In Place of a Will?

Answer 4

Revocable Living Trust

Question 5

When A Stock Must Be Paid In Full From Cash Account

Answer 5

Regular Way Statement + Two Days

Question 6

What Limited Power of Attorney Limits

Answer 6

Withdrawal of Assets

Question 7

What Street Name Means

Answer 7

Securities Will Be Registered in Name of Broker-Dealer

Question 8

Difference Between Coverdell and 529

Answer 8

Coverdell Phases Out People At Higher Income Levels

Question 9

Accounts That Prohibit Use of Margin

Answer 9

IRA and Individual Custodial Account

Question 10

Fee Based Comission

Answer 10

Set Amount Charged Monthly or Quarterly for All Trading Transactions

Question 11

Benefits of Transfer On Death

Answer 11

Avoids Probate, Account Holder Can Still Make Beneficiary Changes