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1.
A margin account is an account in which the investor pays slightly more than the value of the securities being purchased.
False. A margin account is one in which the investor does not have to pay the full value of the trade. Instead, the investor borrows.
2.
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.
3.
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.
4.
A "special miscellaneous account" is an account that allows a margin trader to monitor his or her borrowing power.
True. A special miscellaneous account is a kind of margin sub-account through which a margin trader can keep track of his or her current borrowing power.
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.