Section 6 Flashcards
(42 cards)
Finder’s fees are always illegal.
Finder’s fees are always illegal.
Under Federal Reserve Board Regulation T, if a client fails to settle a stock purchase within five business
days, the client’s position must be liquidated, unless an extension is granted.
Under Federal Reserve Board Regulation T, if a client fails to settle a stock purchase within five business
days, the client’s position must be liquidated, unless an extension is granted.
SIPC covers broker/dealer insolvency up to $500,000 per separate customer.
SIPC covers broker/dealer insolvency up to $500,000 per separate customer.
SIPC covers up to $500,000 per separate customer, of which $250,000 may be cash.
SIPC covers up to $500,000 per separate customer, of which $250,000 may be cash.
SIPC covers cash and securities held for customers by an insolvent broker/dealer.
SIPC covers cash and securities held for customers by an insolvent broker/dealer.
SIPC does not cover mutual fund accounts.
SIPC does not cover mutual fund accounts.
SIPC covers insolvent broker/dealers.
SIPC covers insolvent broker/dealers.
All new customer accounts must be approved by the registered principal of the broker/dealer.
All new customer accounts must be approved by the registered principal of the broker/dealer.
An unhappy client has up to six years to file for arbitration.
An unhappy client has up to six years to file for arbitration.
Under Regulation T, if the client does not pay by the end of the fifth business day and no extension has been granted, the broker/dealer must liquidate the trade.
Under Regulation T, if the client does not pay by the end of the fifth business day and no extension has been granted, the broker/dealer must liquidate the trade.
When opening a new account, you must ascertain the client’s date of birth.
When opening a new account, you must ascertain the client’s date of birth.
$50,000 is the maximum amount that may be arbitrated under FINRA’s simplified arbitration procedure.
$50,000 is the maximum amount that may be arbitrated under FINRA’s simplified arbitration procedure.
When opening an account with another firm to buy corporate securities, a R/R must notify both the executing firm and their employing firm in writing.
When opening an account with another firm to buy corporate securities, a R/R must notify both the executing firm and their employing firm in writing.
Under Tenants in Common, owners may have a fractional interest in the undivided whole. Upon death, the interest passes to their estate, unlike Joint Tenants with the Right of Survivorship, where the interest passes to the survivor upon death.
Under Tenants in Common, owners may have a fractional interest in the undivided whole. Upon death, the interest passes to their estate, unlike Joint Tenants with the Right of Survivorship, where the interest passes to the survivor upon death.
Under the Uniform Gift to Minors Act, unearned income in excess of the current limit allowed that is received by a child, if the child is under age 19 or a full-time student and under age 24, is taxed at the parent’s top marginal tax bracket.
Under the Uniform Gift to Minors Act, unearned income in excess of the current limit allowed that is received by a child, if the child is under age 19 or a full-time student and under age 24, is taxed at the parent’s top marginal tax bracket.
When selling shares held by tenants in common, the shares must be endorsed by both parties.
When selling shares held by tenants in common, the shares must be endorsed by both parties.
Under the UGMA, there can be only one child and one custodian per account.
Under the UGMA, there can be only one child and one custodian per account.
Regulation S-P requires that a Privacy Notice be given at the time of opening a new account and again annually.
Regulation S-P requires that a Privacy Notice be given at the time of opening a new account and again annually.
A ‘discretionary agreement’ is a limited power of attorney a B/D or agent obtains from a customer in order to buy or sell stocks on their behalf.
A ‘discretionary agreement’ is a limited power of attorney a B/D or agent obtains from a customer in order to buy or sell stocks on their behalf.
Gifts under UGMA are considered to be irrevocable.
Gifts under UGMA are considered to be irrevocable.
When opening a new account, a R/R must determine if the client is of legal age, their investment objective and the name and address of their employer. However, their employer’s tax ID is NOT required.
When opening a new account, a R/R must determine if the client is of legal age, their investment objective and the name and address of their employer. However, their employer’s tax ID is NOT required.
When opening a joint account with a customer, a R/R must obtain approval of the firm where the customer maintains his account.
When opening a joint account with a customer, a R/R must obtain approval of the firm where the customer maintains his account.
When a R/R wants to open an account with another firm to buy corporate securities, they must notify the executing firm of their affiliation.
When a R/R wants to open an account with another firm to buy corporate securities, they must notify the executing firm of their affiliation.
If a R/R wants to arbitrate $43,000 in commissions he says are due from his firm, he should file under the Simplified Code of Arbitration (disputes limited to $50,000 or less).
If a R/R wants to arbitrate $43,000 in commissions he says are due from his firm, he should file under the Simplified Code of Arbitration (disputes limited to $50,000 or less).
