Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

Start a Study Session Sign up for Question of the Day
Which of the following documents must a broker-dealer deliver on or prior to the confirmation due date to a client who is purchasing a security?
  1. a margin agreement if the purchase is being made on margin
  2. a final prospectus
  3. a preliminary prospectus
  4. a hypothecation agreement
Explanation
Answer: B - A broker-dealer must deliver a final prospectus to a client who is purchasing a security either on or prior to the confirmation due date. The margin agreement need not be signed until after the initial transaction takes place. The hypothecation agreement is part of the margin agreement. As an alternative, a preliminary prospectus can be provided, but it must be accompanied by additional information that is contained in the final prospectus, but is missing from the preliminary prospectus. Therefore, Choice C, as written, is not correct.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz