Chapter 2 Flashcards
Vesting
The right an employee gradually acquires by length of service at a company to receive employer-contributed benefits.
The right an employee gradually acquires by length of service at a company to receive employer-contributed benefits.
Vesting
For a joint account, how many account numbers and SSNs are used for tax reporting?
One
A situation whereby delivery of securities are made to the buying client’s agent in exchange for payment
Delivery versus payment
An account in one person’s name that allows a beneficiary to gain control upon the account holder’s death.
TOD Account
To meet the minimum maintenance for day trading, _____ between accounts and/or clients are not allowed
cross guarantees
An arrangement between two or more related firms to provide reciprocal guarantees for each other’s liabilities, fulfillment of promises or obligations.
Cross Guarantee
A situation whereby payment on a trade is made when a security delivery is received and accepted by selling client’s agent.
Receipt versus payment
For accounts opened for employees of another member firm, what is provided to the individual’s employer upon request?
Duplicate confirmations and statements
Three items that must be specified on a not held order are:
- Action (buy/sell)
- Amount (quantity)
- Asset (security)
Only ____ transactions can be effected if a client does not sign and return the options account agreement.
closing
Churning is described as excessive trading designed to:
generate commissions
A _____ and the _____ are required for a corporation to open an options or margin account.
corporate resolution; corporate charter
What are the steps taken if a customer dies?
Mark the account “deceased”, cancel open orders, and await instructions
