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1.
The investor information required to establish a cash account includes all of the following except _______.
The investors occupation. In order to establish a cash account, the investor is responsible for providing basic personal information, including his or her name, address and phone number, a tax ID or Social Security number, and proof that he or she is of legal age.
2.
The registered representative asks the investor to sign and return the options disclosure agreement _______.
Within 15 days of account approval. The registered representative asks the investor to sign and return an options disclosure agreement within 15 days of account approval.
3.
A short sale is executed when an investor thinks the value of the stock will _______.
Drop. The investor sells the stock and then buys it back after it has fallen in price.
4.
An arbitrage is the simultaneous purchase and sale of the same or equivalent security on two different markets.
True. The objective is to take advantage of price discrepancies on the two markets.
5.
A wrap account is one in which all associated costs are wrapped into a single fee.
True. A wrap account is a brokerage account in which all associated costs--broker commissions, money management fees, and transaction costs--are wrapped into a single fee.