Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

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According to the NASAA Model Rules, a broker-dealer is not permitted to allow a customer to engage in margin transactions unless
  1. the broker-dealer already has a margin agreement signed by the client in hand.
  2. the broker-dealer receives a margin agreement signed by the client promptly after the client’s first margin transaction.
  3. the client has a net worth of at least $500,000.
  4. the client has been a customer of the firm for at least 6 months.
Explanation
Answer: B - A broker-dealer is not permitted to allow a customer to engage in margin transactions unless the broker-dealer receives a margin agreement signed by the client promptly after the client’s first margin transaction.
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