SIE Exam: Customer Accounts Questions & Answers 2023/2024
4 views 0 purchase
Course
SIE Ecustomer Accounts
Institution
SIE Ecustomer Accounts
SIE Exam: Customer Accounts Questions & Answers 2023/2024
When are cold calls permitted? - ANSWER-Between 8am and 9pm in the time zone of the person being called
Are broker-deals required to maintain a record of new account forms? - ANSWER-Yes
What is an introducing firm? - ANSWER-Has a di...
SIE Exam: Customer Accounts
Questions & Answers 2023/2024
When are cold calls permitted? - ANSWER-Between 8am and 9pm in the time zone of the person being
called
Are broker-deals required to maintain a record of new account forms? - ANSWER-Yes
What is an introducing firm? - ANSWER-Has a direct relationship with the client -- can open accounts and
accept customer orders
Does not handle customer assets or actual trade
What is a clearing firm? - ANSWER-Responsible for processing and selling customer transactions,
maintaining custody of customer cash and securities
What is free-riding? - ANSWER-When an investor sells her securities without ever paying for them
What is necessary to execute short sales? - ANSWER-A margin account
What does Regulation T require for the short sale of securities? - ANSWER-Customers must deposit at
least 50% of purchase price in equity and can borrow remaining 50% from broker-dealer
Which securities can be purchased on margin? - ANSWER-Exchange-listed stocks
OTC stocks
Bonds
Closed-end funds
ETFs
LEAPS options with 9+ months to expiration
, What is a hypothecation agreement? - ANSWER-A customer agrees to pledge the securities in the
account as collateral for a loan
When is a trade considered discretionary? - ANSWER-When a rep decides any one of the following:
1. Action: whether to buy or sell
2. Asset: which security to buy
3. Amount: number of shares
What is necessary for discretionary transactions to be executed? - ANSWER-Power of attorney
What is an individual account? - ANSWER-The owner has trading authority -- a non-account holder can
only trade if approved in writing by account holder
What is a joint account? - ANSWER-Account with 2+ owners, two unrelated adults can open a joint
account, but a parent and minor child cannot
What is a joint tenants in common (TIC) account? - ANSWER-Each account holder owns a specific % of
the assets
Two siblings who want to open an account together but leave assets to respective spouses should open
this type of account
What is a joint tenants with rights of survivorship (JTWROS) account? - ANSWER-All owners own 100% of
assets
Can a minor open an individual account or be part of a joint account? - ANSWER-No, but she can be part
of a UGMA or UTMA
Can a minor trade in any type of account? - ANSWER-No
Whose social security number is required for a UGMA or UTMA account? - ANSWER-The minor's number
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Bensuda. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
