3.4 didn't know

Question 1

Assets may be transferred from one account to a different account within the same firm by use of which of these?

Answer 1

Journal letter

This is accomplished through a journal letter (or request). A transfer initiation form is used to start a transfer between different firms. The other two names are not related to this topic.

Question 2

Which of the following is an example of a discretionary trade?

A)
The customer requests a representative buy 300 shares of BuyStuff, Inc., stock.

B)
The customer requests a representative sell 300 shares of BuyStuff, Inc., from their account.

C)
The customer requests a representative purchase 100 shares of MNO Corp. common stock when they think best.

D)
The customer requests a representative buy 300 shares of a good tech company.

Answer 2

The customer requests a representative buy 300 shares of a good tech company.

The customer must specify the investment to be purchased, not just “a good company.” Time authority does not constitute discretion.

Question 3

Morgan and Mackenzie have a joint tenants with rights of survivorship account with your firm. Unfortunately Mackenzie passes away. Morgan would like the funds to be in his name only. What paperwork will the firm need to accomplish the task?

Answer 3

Morgan will need to open a new account and request a journal transfer of the assets to the new account.

A decedent’s name will remain on the account. Morgan will need to open a new account and authorize a journal transfer of the assets.