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

By Investopedia Staff AAA
Q:
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
A:

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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