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Flashcards in Customer Accounts Deck (130)
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1

When a written trade confirmation must be given or sent to a customer

At or before the completion of the transaction (settlement)

2

Regulation that requires sheltering of private customer information and privacy notices

Regulation S-P

3

When principal approval is required for a new customer account

At or promptly after the first transaction in the account

4

Two types of custodial accounts established for minors

UGMAs and UTMAs

5

Joint account that passes assets to surviving owner at death with no probate

Joint tenancy with rights of survivorship (JTWROS)

6

Type of account that passes assets at death by will to the heirs

Joint tenants in common (JTIC)

7

Type of joint account that permits unequal ownership interests

Joint tenants in common (JTIC)

8

Type of joint account that requires equal ownership interests

Joint tenancy with rights of survivorship (JTWROS)

9

Type of account that authorizes registered representatives to make trades on behalf of the customer

Discretionary

10

Prohibited practice of trading frequently to boost commissions

Churning

11

Two order instructions that are not considered discretionary

Time and price

12

Length of time mail can be held for customers that are traveling in the U.S.

3 months

13

Length of time mail can be held for customers that are traveling outside of the U.S.

3 months

14

Minimum frequency for sending customer account statements

Quarterly

15

Frequency with which account statements are sent to customers in an active account

Monthly

16

Minimum frequency statements are sent to customers if penny stocks are held in the account

Monthly

17

When a principal must approve an order ticket

Promptly after execution

18

The number of days after account opening a firm has to furnish a copy of the account record to the customer

30 days

19

Two required documents for opening a corporate account

Corporate charter and corporate resolution

20

Account charge that is appropriate only for persons who engage in moderate to active trading

Fee-based

21

Account charge that is appropriate for persons who engage in little trading activity

Commission

22

Type of responsibility that applies to persons named to manage custodial accounts

Fiduciary

23

When assets transfer to the donee in an UGMA account

Age of majority

24

The Social Security number on an UGMA account form

The minor's

25

The frequency that customer account information must be updated

Every 3 years

26

A pattern day trader effects 4 or more day trades within a

5 business day period

27

Customers must receive a copy of new account form every

36 months

28

Customers must be given a copy of new account form within

30 days of account opening

29

The party that can buy, sell or liquidate securities in an UGMA account

Custodian

30

When assets transfer to the donee in an UGMA account

Age of majority