Stocks Intermediate: Types of Stock Accounts

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1.
A wrap account is one in which all associated costs are wrapped into a single fee.
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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.
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.
Because a margin account charges interest, there are no additional commission charges as in other stock accounts.
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False. Each time a margin investor executes a trade, the responsible broker is paid a commission, calculated as a percentage of the total transaction value.
4.
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.
5.
The cash account is the most common type of securities account.
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True. The most common type of investor securities account is the cash account.