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17 Cards in this Set

  • Front
  • Back
Any material used in newspapers, magazines, radio, television, telephone recordings, motion pictures, or other public media.

*d. During the first year of operation, a broker-dealer must file advertisements with the NASD at least 10 days prior to publication.
Sales literature and market letters
Notices, circulars, research reports, form letters, and reprints of published articles.
Regulation Concerning Public Communications
The broker-dealer must retain copies of all communications with the public for three years. The first two years the materials must be within reach.
Requirements for Opening a New Account
- NYSE Rule 405 (Know Your Customer)
- New Account Form
NYSE Rule 405 (Know Your Customer)
Requires the RR opening the account to use due diligence to learn all essential facts about the account (other exchanges and the NASD have similar rules).
New Account Form
Customer’s name and residence, whether the customer is of legal age, signature of the RR opening the account, signature of the partner, officer, or manager (principal) approving the account. A customer’s signature is not required for a cash account; it is required for a margin or option account.

* A partner or principal of the firm must approve the account promptly, on the day it is opened, but not necessarily before any transactions.
New Account Form - Business or Organization Account
Taxpayer ID, Customer’s citizenship, Customer’s occupation as well as the employer’s name and address, whether the customer is associated with another NASD member, information used to make recommendations to the customer, including financial background, tax status, and investment objectives.
Common Investment Objectives
Preservation of Capital
Tax Relief
Risk Tolearnce
Time Horizon
Tax Relief
Investors with substantial incomes are subject to higher taxes. Some investments such as municipal bonds produce income that is tax-exempt. Annuities and retirement plans are usually tax-deferred.
Investors whose primary investment goal is income want investments that produce a steady, reliable stream of cash (e.g. bonds, utility stocks, annuities).
Preservation of Capital
Some investors are primarily concerned with safety. Client with this objective often invest in U.S. Treasury bills or money-market mutual funds. The investments are safer and more liquid.
Types of Accounts
Individual Accounts
Joint Accounts
Corporate Account
Partnership Accounts
Fidicuary Accounts
Accounts for Incompetents
Accounts for Minors
Joint Tenants with Rights of Survivorship
both tenants own the property in the account jointly. If one tenant dies, the ownership of the account passes to the remaining tenant without going through the decedent’s estate and being subject to probate.
Tenants in Common (TIC):
ownership may be proportional to a tenant’s contribution to the account, and a deceased owner’s interest in the account will pass to the deceased’s estate.
Transfer of Death (TOD)
not a joint account, but rather allows the account assets to be transferred to a beneficiary at death.
Uniform Gifts to Minors Act
an adult donor gives an irrevocable (irreversible) gift of cash or securities to a minor, and appoints an adult to act as custodian for the minor.
Uniform Transfers to Minors Act
new version of the UGMA with provision similar to the UGMA.