Series 65: Unit 18 || A+ Graded Already.
Individual account correct answers An account for a natural person, a trust or deceased person
through an estate account
Investment Policy Statement correct answers A written statement of objectives and investment
strategies for a client account
Account holder correct answers The only person who can control the investment within an
account or request distributions of cash or securities from the account
Joint Account correct answers Owned by two or more persons and each has control over the
account
Three designations for a joint account correct answers 1) Tenants in common (TIC) 2) joint
tenants with rights of survivorship (JTWROS) 3) tenants by the entirety
Buying and selling for joint accounts correct answers Trading activity, buying or selling, can be
initiated at the request of one of the parties
When a security is bought or sold, who must be on the certificate? correct answers If a security is
purchased both parties must be on the certificate. When it is sold, all parties must sign the
certificate
Tenants in Common (TIC) correct answers Document that provides that a deceased tenants
fractional interest in an account is retained by that tenant's estate and is not passed to the
surviving tenant.
Can TIC accounts be used by more than two parties? correct answers Yes!
Joint tenants with right of survivorship correct answers A document that specifies that a deceased
tenant's interest in the account passes to the surviving tenants
When the test says Joint Tenants, what does it mean? correct answers It is talking about a Joint
Tenants with Rights of Survivorship
Tenancy by the Entirety (TBE) correct answers A TBE can only be created by married persons.
The consent of the other tenant is also required before the other tenant can sell or give away their
interest in the property. If one of the spouses dies, the surviving spouse will get the interest of the
deceased spouse. Most commonly used for real estate
Undivided interest correct answers Means that the assets themselves are not divided between the
owners. 60/40 would mean that one owner would have 60% of each holding and the other would
have 40% of each holding.
Tenants in common have correct answers unequal interest in the account
, Joint tenants with right of survivorship have correct answers equal share always
Tenants by the entirety have correct answers No separate shares and are considered equal owners
Does TICS avoid probate? correct answers No, the will is still going to be reviewed to make sure
it is valid and authentic
Can a minor and a parents open a joint account? correct answers No!
Information needed in New Account Agreement contract correct answers 1) legal capacity 2)
employment information 3) Customer Identification Program
Information needed in a Custom Identification Program correct answers 1) name 2) date of birth
3) permanent physical address 4) tax ID 5) citizenship or visa details 6) financial info of client
Who offers guidelines on opening option accounts? correct answers FINRA
Role of designated supervisory person in opening options account correct answers They must
approve the account opening
Options Disclosure Document (ODD) correct answers Must be provided to any options customer
at or prior to the time such customer's account is approved for options transactions
Question that is required for opening a brokerage account but not a normal brokerage account
correct answers Investment experience and knowledge
Account approval for an options account will show correct answers 1) date of ODD delivery 2)
nature and type of transactions approved 3) name of agent assigned to client 4) name of
supervisor approving account 5) date of approval 6) dates of verification of currency of account
info
With 15 days after a customer's option account has been approved, what must be obtained?
correct answers The BD must obtain from the customer a written agreement that the customer is
aware of and agree to the FINRA rules and has received a copy of the current ODD. Also that
they are bound to the Options Clearing Corporation
General business partnership correct answers Two GPs that are responsible for the operations
and debts of the business. Not well suited for raising large sums of capital. Profits and losses
flow through to investors for tax purpose and are not taxed twice
Limited business partnership correct answers In this case, there is a general partner who is
responsible for operations and debt and a limited partner who is passive and has liability for their
investments
Individual account correct answers An account for a natural person, a trust or deceased person
through an estate account
Investment Policy Statement correct answers A written statement of objectives and investment
strategies for a client account
Account holder correct answers The only person who can control the investment within an
account or request distributions of cash or securities from the account
Joint Account correct answers Owned by two or more persons and each has control over the
account
Three designations for a joint account correct answers 1) Tenants in common (TIC) 2) joint
tenants with rights of survivorship (JTWROS) 3) tenants by the entirety
Buying and selling for joint accounts correct answers Trading activity, buying or selling, can be
initiated at the request of one of the parties
When a security is bought or sold, who must be on the certificate? correct answers If a security is
purchased both parties must be on the certificate. When it is sold, all parties must sign the
certificate
Tenants in Common (TIC) correct answers Document that provides that a deceased tenants
fractional interest in an account is retained by that tenant's estate and is not passed to the
surviving tenant.
Can TIC accounts be used by more than two parties? correct answers Yes!
Joint tenants with right of survivorship correct answers A document that specifies that a deceased
tenant's interest in the account passes to the surviving tenants
When the test says Joint Tenants, what does it mean? correct answers It is talking about a Joint
Tenants with Rights of Survivorship
Tenancy by the Entirety (TBE) correct answers A TBE can only be created by married persons.
The consent of the other tenant is also required before the other tenant can sell or give away their
interest in the property. If one of the spouses dies, the surviving spouse will get the interest of the
deceased spouse. Most commonly used for real estate
Undivided interest correct answers Means that the assets themselves are not divided between the
owners. 60/40 would mean that one owner would have 60% of each holding and the other would
have 40% of each holding.
Tenants in common have correct answers unequal interest in the account
, Joint tenants with right of survivorship have correct answers equal share always
Tenants by the entirety have correct answers No separate shares and are considered equal owners
Does TICS avoid probate? correct answers No, the will is still going to be reviewed to make sure
it is valid and authentic
Can a minor and a parents open a joint account? correct answers No!
Information needed in New Account Agreement contract correct answers 1) legal capacity 2)
employment information 3) Customer Identification Program
Information needed in a Custom Identification Program correct answers 1) name 2) date of birth
3) permanent physical address 4) tax ID 5) citizenship or visa details 6) financial info of client
Who offers guidelines on opening option accounts? correct answers FINRA
Role of designated supervisory person in opening options account correct answers They must
approve the account opening
Options Disclosure Document (ODD) correct answers Must be provided to any options customer
at or prior to the time such customer's account is approved for options transactions
Question that is required for opening a brokerage account but not a normal brokerage account
correct answers Investment experience and knowledge
Account approval for an options account will show correct answers 1) date of ODD delivery 2)
nature and type of transactions approved 3) name of agent assigned to client 4) name of
supervisor approving account 5) date of approval 6) dates of verification of currency of account
info
With 15 days after a customer's option account has been approved, what must be obtained?
correct answers The BD must obtain from the customer a written agreement that the customer is
aware of and agree to the FINRA rules and has received a copy of the current ODD. Also that
they are bound to the Options Clearing Corporation
General business partnership correct answers Two GPs that are responsible for the operations
and debts of the business. Not well suited for raising large sums of capital. Profits and losses
flow through to investors for tax purpose and are not taxed twice
Limited business partnership correct answers In this case, there is a general partner who is
responsible for operations and debt and a limited partner who is passive and has liability for their
investments
