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35 Cards in this Set
- Front
- Back
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Does the customer need to sign the new account form to open the account? |
No but they must sign the W-9 and predispute arbitration agreement as part of the new account opening package |
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Oil and gas programs, real estate partnerships and equipment leasing programs are all examples of? |
DPPs |
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What two types of trade require customer approval in a discretionary account? |
Existence of control relationship and a DPP transaction |
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Turnover ratios? |
used in judging quantitative suitability and in some cases spot churning, annual cost of trading as a percentage of the clients investments |
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Certificate of incumbency? |
Appoints an individual to oversee a guardianship account, valid for 60 days. |
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Reg T requirement/Fed call? |
50% of the market value of securities being purchased on margin |
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Hypothecation? |
140% of the customer debit balance,
The firm can never borrow more than 100% of the debit balance |
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Firms securities may be comingled with those of another customer, but never with |
Proprietary securities |
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SMA? |
.50 for every dollar the security rises above the initial cost |
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Minimum Maint in a long margin account? |
25% |
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Short sales? |
A short seller is required to remit cash dividends paid by the issuer to the buyer of the stock to the lender |
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The locate requirement for short sales can be made from an available securities list if the list is updated |
Once per business day, an easy to borrow list |
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A customer must maintain how much equity in a short account? |
$2000 , regardless if the short stock is worthless |
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If the market value of the long position were to decline, and the short position were to increase what effect would this have on an equity?
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A negative effect. |
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What is on the order ticket but not on the confirmation? |
Whether the order is solicited , unsolicited or discretionary |
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if the customer pays before the settlement date, when is the trade considered complete? |
When the securities are delivered into the account, on settlement |
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Free credit balance notification is required monthly for active accounts accompanying account statements and ? |
Quarterly for inactive accounts |
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State securities laws are referred to as ? |
Blue sky laws |
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Member firms acting as owners of record must vote street name stock in accordance with the wishes of? |
The beneficial owners, or recommended by management if no indication comes from customer |
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All physical deliveries must be made by the seller at the office of the ? |
Purchaser, all expenses are borne by the seller |
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Partial deliveries are never acceptable under? |
MSRB rules, they are acceptable under Finra rules only if the amount yet to be delivered is in round lots |
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If a notice of call for an entire issue occurs on or prior to the trade date, delivery cannot be made on the transaction and? |
It must be arbitrated |
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Who determines the ex date? |
FINRA |
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Declaration, record and payment are determined by the ? |
board of directors |
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The first date a stock trades without a due bill is? |
The ex div date |
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Every member must maintain a separate file of all written customer complaints that relate to that OSJ for how many years? |
4 years |
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To compute a long market value a maint, divide the debit balance by .75 |
25% in the min maint in a long margin account |
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Reg T allows customers up to how many days to pay for securities |
5 biz days |
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To compute the short market value at maintenance divide the credit balance in the account by 1.3
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min maintenence in a short margin account is 30%
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DVP Transactions |
T plus 1 The member is required to receive assurance from the customer that proper instructions have been given to the agent bank |
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How much can the member borrow? |
never more than the member reloans to the customer using the customers securities as collateral |
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UGMA accounts? |
Securities registered in custodians name, beneficial owner is the minor Gifts may be made in cash/fully paid securities May not be revoked No limit |
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A principal must review all discretionary accounts |
Daily |
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A list of borrowable securities for short sale purposes must be updated? |
Daily |
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The ex date for stock divs and splits that are valued at 25% or more of the subject security is 1 biz day prior to the |
payable date |
