SIE Exam: Customer Accounts Questions & Answers 2023/2024
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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
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