Stocks Intermediate: Types of Stock Accounts

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1.
A short sale is executed when an investor thinks the value of the stock will _______.
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Drop. The investor sells the stock and then buys it back after it has fallen in price.
2.
The registered representative asks the investor to sign and return the options disclosure agreement _______.
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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.
To churn an account is to _______.
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Execute trades for the sole purpose of generating commissions. To churn an account is to execute trades for the sole purpose of generating commissions.
4.
The investor information required to establish a cash account includes all of the following except _______.
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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.
5.
A "special miscellaneous account" is an account that allows a margin trader to monitor his or her borrowing power.
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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.