Question of the Week

If a person's account is frozen, which of the following activities is allowed?

I. Purchases must be made in cash
II. Sales require the delivery of the securities first.
III. No purchases or sales are allowed.
IV. Activities are normal, but require close attention from regulators.

a) I and II
b) II and III
c) III only
d) IV only

Answer:

The correct answer is a
A frozen account does not mean that the person can not trade, it means that transactions must be done on a cash-and-carry basis.

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    References from trusted friends or family members can help you find a financial planner; however, keep in mind that your friends' financial situations and goals may differ from yours and, therefore, their planners won't necessarily be the best fit for you.The Certified Financial Planner (CFP) Board of Standards certifies financial planners and maintains an online list of certified financial planners on its CFP Board of Standards website.
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    Under the USA, registration as an IAR includes all of the following EXCEPT:

    Under the USA, registration as an IAR includes all of the following EXCEPT: A. Minimum net capitalB. Passing a qualification examC. Filing a consent to service of processD. Posting a surety bond The correct answer is "A", since only an IA would need to prove minimum net capital requirements.