Q:

Which of the following signatures are required on a client’s new account form?
I. The client’s
II. The client’s spouse
III. The registered representative
IV. The principal

A) I, II
B) III, IV
C) I, III, IV
D) I, II, III, IV

A:

The correct answer is B.
While local practices of a broker-dealer might require the client to sign the form, even when opening a cash account, the rules do not require this. Only the RR and the supervising principal are required, according to rules, to sign the form.


MORE FAQS

  1. Which of the following, under the NASD Conduct Rules, would constitute a complaint ...

  2. If a sales representative moves from one broker-dealer to another ...

  3. Under the Uniform Securities Act, registration with the Administrator as an investment adviser is required ...

  4. An advisor has all client advisory fees automatically deducted from their accounts by the custodian. 

  5. ABC Broker-dealer has no office in state and transacts fewer than five trades during a 12-month period

  6. Which TWO statements are TRUE about writing covered calls? I ...

  7. Which of the following are not types of open-end management investment companies ...

  8. Which of the following deliveries for a 600 share order, broker-dealer to broker-dealer ...

  9. A margin account has a long market value of $12,000, a debit balance of -$6,000 ...

  10. Under the Telephone Consumer Act of 1991, a telemarketer must provide which of the following to a called ...

  11. Which statements about common shareholder rights are FALSE? I. A shareholder may exchange shares to ...

  12. Which of the following statements is (are) true with respect to setting the proper constraints in managing ...

  13. Federal covered securities are subject to which of the following requirements ...

  14. Which of the following statements is (are) true with respect to the calculation of returns of composites ...

  15. Under the Uniform Securities Act, which of the following are defined as securities ...

  16. Are dividends the best way to make money for retirement?

  17. How many attempts at each CFA exam is a candidate permitted?

  18. What's the average salary of a financial advisor?

  19. Why is Hong Kong considered a tax haven?

  20. Is smart beta cheaper than hedge funds?

RELATED FAQS

  1. Which of the following, under the NASD Conduct Rules, would constitute a complaint ...

    The correct answer is b. The NASD defines a “complaint” as adverse communications that are in writing. Choices I and III ...
  2. If a sales representative moves from one broker-dealer to another ...

    The correct answer is b. I, II and III are correct since all parties are required to notify the Administrator.
  3. Under the Uniform Securities Act, registration with the Administrator as an investment ...

    The correct answer is c. I is incorrect, since broker-dealers or their agents who don’t receive a fee for making investment ...
  4. An advisor has all client advisory fees automatically deducted from their accounts ...

    The correct answer is c) An advisor is not deemed to have custody of client funds when debiting management fees from the ...
  5. ABC Broker-dealer has no office in state and transacts fewer than five trades during ...

    The correct answer is b. Under these circumstances, the broker-dealer is not required to register with the state and the ...
  6. Which TWO statements are TRUE about writing covered calls? I ...

    The correct answer is c) I is incorrect because there is no margin requirement. III is incorrect because a call writer must ...
RELATED TERMS
  1. Know Your Client - KYC

    A standard form in the investment industry that ensures investment ...
  2. Basel III

    A comprehensive set of reform measures designed to improve the ...
  3. Client Base

    A company's primary source of business. A client base consists ...
  4. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  5. Brochure Rule

    Under the Investment Advisor's Act of 1940, the Brochure Rule ...
  6. Advisor Account

    A type of investment account where an investment advisor works ...
Hot Definitions
  1. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  2. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  3. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  4. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
  5. Inflation

    The rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of ...
  6. Merchandising

    Merchandising is any act of promoting goods or services for retail sale, including marketing strategies, display design and ...
Trading Center