Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

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A margin transaction refers to a transaction
  1. that is illegal under the guidelines of the Uniform Securities Act.
  2. in which the client borrows some of the money that he is investing.
  3. in which a registered agent makes trades on a customer’s account without that customer’s knowledge.
  4. Both A and C are true statements.
Explanation
Answer: B - A margin transaction refers to a transaction in which the client borrows some of the money that he is investing. It is a recognized practice.
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