Chapter 3 - Day-trading Accounts ( FINRA Rule 2130) Flashcards
If a member who promotes a day trading strategy opens an account and receives written assurance that the customer does not intend to engage in day trading—and later determines that the customer is day trading—it must approve the account within how many days ?
10 days
Before opening an account for a non-institutional customer, the member must:
Before opening an account for a non-institutional customer, the member must:
■ provide the customer with a risk disclosure statement that outlines all the risks associatedwith day trading (the statement can be furnished in writing or electronically); and
■ approve the account for a day trading strategy or receive from the customer a written statement that the customer does not intend to engage in day trading.
A firm will not or will be deemed to be promoting a day trading strategy if it promotes lower execution costs based on multiple trades and has a website that allows multiple entry of intra day trades of the same securities ?
A firm will not be deemed to be promoting a day trading strategy if it promotes lower execution costs based on multiple trades and has a website that allows multiple entry of intra day trades of the same securities
Numbered accounts
At a customer’s written request, an account may be identified by only a number or symbol. These are called numbered accounts. Numbered accounts may be useful to celebrities to preserve anonymity
A member firm cannot open a margin account for a non-institutional account without furnishing which doc ?
No member firm is permitted to open a margin account for a non-institutional account without the firm furnishing thecustomer a margin disclosure statement.
How often must a firm provide a margin disclosure statement ?
at the opening of the margin account and annually
Extended Trading Hours requires which doc ?
Extended Trading Hours Disclosure Doc
