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NEW QUESTION 46
Which of the following clients could not open a margin account?
Answer: B
Explanation:
a custodian under UGMA. The Uniform Gifts to Minors Act requires securities registration in the name of the custodian for the benefit of the minor. A margin account does not qualify because such an account has all securities registered in street name.
NEW QUESTION 47
In regard to discretionary accounts, which of the following statements is correct?
Answer: A
Explanation:
both B and C. Choice A is the opposite of a discretionary account. Both B and C are standard procedures for a discretionary account.
NEW QUESTION 48
The principal underwriter of an open-end investment company is frequently called:
Answer: A
Explanation:
Explanation/Reference:
Explanation: sponsor. Also called the "distributor", these terms are interchangeable for an open -end investment company.
NEW QUESTION 49
A registered representative privately assures a customer that a certain stock will double within 18 months.
During this period the stock the stock performs as predicted.
Which of the following statements is true?
Answer: B
Explanation:
Explanation/Reference:
Explanation: this statement constituted a form of fraud prohibited under the Securities Exchange Act of
1934. Such statements are fraudulent when rendered even if future events result in their accuracy.
NEW QUESTION 50
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