Series 53: Exercise

Exercise

Answer TRUE or FALSE

1. 1. TRUE or FALSE. The only required signatures on a new client account form are those of the registered representative and the principal.
2. 2. TRUE or FALSE. Only a Municipal Securities Sales Principal may review and approve the opening of a customer account.
3. 3. TRUE or FALSE. All the information on the new client account form must be obtained from the customer before the completion of the first transaction in her account.
4. 4. TRUE or FALSE. Opening an account for the employee of another broker-dealer is permitted without notifying the other broker-dealer as long as the account is limited to transactions in municipal fund securities.

Answers

1. 1. TRUE. The client’s signature is typically not required on the new account form. The registered representative and the principal reviewing and approving the account must provide a signature. The customer may need to sign a third-party trading authorization, a hypothecation agreement if opening a margin account, or a predisp