Across
- 1. Customers have the right to _______ of the sharing of nonpublic personal information
- 4. This Federal Reserve regulation oversees the process of a bank lending money to broker-dealers based on customer securities having been pledged as collateral for a loan
- 8. This is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business. All income (or loss) is that of the single individual
- 9. __________ basis is one of the suitability components the gives the broker the obligation to perform due diligence and have a legitimate belief that the investment has the potential to earn a profit.
- 10. A full power of attorney allows someone to make _______ decisions
- 12. What the "S" stands for in Regulation S-P
- 13. The _______ firm has one day to validate the securities listed on the TIF form or take exception
- 17. In this type of margin account, customers borrow stock and then sell short.
- 18. This form for margin accounts is optional for customers to sign
- 23. Accounts may be opened by any legally ______ person above the age of majority
- 26. This type of account lets beneficiaries receive assets at the time of the registered owner's death without going through probate
- 27. Transfer and ______ is a type of delivery instruction where the securities are registered in the customers name and shipped to them
- 30. Whose signature is required on the new account form
- 33. This type of account has two or more owners
- 37. This automates and standardizes the procedures for transferring customer accounts
- 38. In discretionary trading, this is one of the three A’s: what you are buying or selling
- 39. In this type of account, the broker lends the customer cash to purchase stocks or other financial products
- 40. This type of account has one beneficial owner
- 41. The Customer _________ Program is a requirement of broker-dealers and is designed to verify the identity of any new customer
- 43. A legal entity that protects investors from the company’s liabilities but function like a partnership for taxes
- 44. FINRA Rule 2111 is also known as the ___________ rule and is based on a fundamental requirement to deal fairly with customers
- 47. This type of account requires the customer to pay in full for securities purchased
- 50. If the security has increased in value and the registered owner has passed away, the beneficiary will receive the higher tax valuation, which is referred to as a _____ ____ cost basis
- 51. When a customer only provides minimum information, they account can still be opened but suitability cannot really be determined. Only this type of trade can occur.
- 52. This ownership provides that a deceased owner’s fractional interest in the account go to their estate, not passed to the surviving owner’s
- 57. In this type of joint account provides that a deceased tenants fractional interest in the account is retained by that tenant's estate
- 58. This is when a broker-dealer uses customer securities as collateral for a loan from a bank
- 59. In this type of joint account, all parties have equal undivided interests
- 60. This is a formal arrangement by two or more people to manage and operate a business and share its profits
- 61. This suitability component obligates the broker to have a reasonable basis to believe that a particular recommendation is suitable for a given customer
- 62. The completed new account form (and any updated forms) must be sent to the customer within _____ days
- 63. This occurs when the value of an investor's margin account falls below the broker's required amount
- 64. ________ property is a marital property classification recognized by some states where most property acquired during the marriage is considered to be owned jointly by both spouses
Down
- 2. If a registered representative moves to a new firm, how long does the delivery of educational materials to former customers apply after the rep begins the new employment
- 3. this is the pledging of customer securities as collateral for margin loans
- 5. A partnership must complete a partnership _______, stating which partner(s) can make transactions for the account
- 6. Knowing your customer begins with the ________ form.
- 7. ________ is required from the employer when a firm employee wishes to open an account with a different broker-dealer
- 11. A _______ is designed to verify the identity of any new customer
- 14. Brokers must make a(n) __________ effort to obtain additional information when opening a new account, but a customer may neglect or refuse to provide all information
- 15. A stock _______ firm is a specialized company that can be a source for borrowing funds to trade on margin
- 16. A partnership is known as an ___________ association
- 19. This suitability component requires a broker to examine the client portfolio and make sure that the recommendation is suitable in both amount and fit in light of the clients existing assets
- 20. This type of account is fiduciary appointed by a court to manage the affairs of a beneficiary
- 21. When a person passes away, the cost basis to the beneficiary is the ___ on the date of the owner's death
- 22. A legal taxpaying entity. All liability belongs to the corporation
- 24. A person with limited power of attorney cannot make _______ of assets
- 25. A customer can give ________ power over their account(s) to someone else only by a trading authorization or limited power of attorney
- 28. The Transfer _______ Form facilitates the transfer of securities from one trading account to another at a different brokerage firm or bank
- 29. A registered Investment Advisor has a(n) _______ obligation to act in the best interest of their clients
- 31. In this type of margin account, customers purchase securities and pay interest on the money borrowed until the loan is repaid.
- 32. This type of account is established for a minor, in either an UTMA or UGMA
- 34. A ________ requirement is the minimum equity that must be held in a margin account determined by FINRA
- 35. In discretionary trading, this is one of the three A’s, buy or sell
- 36. this refers to securities that can be used as collateral in a margin account
- 42. Under Regulation S-P, each financial institution has the responsibility to protect the privacy of its customers ______
- 45. The ________ firm sends the TIF form to ACATS
- 46. In discretionary trading, this is one of the three A’s, shares or dollars
- 48. If securities are registered in the broker-dealers name and held by the broker-dealer, they are held in ________
- 49. This type of ownership is used for legally married people only.
- 53. A _______ POA will survive a declaration of mental competence
- 54. These securities are delivered to a bank or depository against payment. This is a cash-on-delivery settlement
- 55. This is one of the exceptions made under the community property classification
- 56. Broker-dealers are allowed to have higher minimum equity requirements. This is known as_______