This week’s study question from the Solomon Online Exam Simulator question database is now available.
Which is true of securities held in a margin account?
I. Customer is the beneficial owner
II. BD is the beneficial owner
III. Customer is the registered owner
IV. BD is the registered owner
A. I and III
B. II and IV
C. I and IV
D. II and III
Correct Answer: C. I and IV
Rationale: Securities held in a margin account are always held in street name. Securities held in street name are registered in the broker-dealer’s name, but the customer is the beneficial owner.
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