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SEC 6.3

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6 Questions

  1. Your customer purchases 200 shares of ABC stock at $9 a share in a cash account. The customer is expected to deposit how much to pay for the trade? A. $900 B. $1,800 C. $2,000 D. $450

$1,800

  1. As the first purchase in a new margin account, your customer purchases 200 shares of ABC stock at $9 a share. The customer is expected to deposit how much to pay for the trade? A. $900 B. $1,800 C. $2,000 D. $450

$1,800

  1. When opening a new brokerage account that will allow for margin trading, all of the following forms are required except A. account application B. credit agreement C. consent to loan agreement D. hypothecation agreement

consent to loan agreement

  1. Your customer calls and requests that you purchase 300 shares of Seabird Coffee Company. He recently read an article online about the company's new collaboration with Sorag coffee makers and likes the prospects of Seabird. This is an example of A. a solicited trade B. an unsolicited trade C. a discretionary trade D. a suggested trade

an unsolicited trade

  1. Your customer, Cleveland Brown, would like you to be able to place trades in his account as and when you think best. In order to trade on a discretionary basis in Brown's account, you will need authorization from which of these?
  2. FINRA II. A principal III. The customer V. The state administrator A. l and Il B. I and III C. I and IV D. Il and III

Il and III

  1. The customer must agree to three specific elements of a trade before the trade's execution for the trade to be nondiscretionary. Which of the following is not required? A. Action B. Asset C. Allowance D. Amount

Allowance

Test your knowledge on calculating the payment amount for a stock purchase in a cash account. Determine how much the customer needs to deposit based on the number of shares bought and the share price.

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