Term
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Definition
...record customers' investment activities
...are the foundation of the brokerage business
...serve as repositories for customers' cash and securities |
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Definition
| Accepts new accounts on behalf of the firm |
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Term
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Definition
| The form that must be filled out for each new account opened with a brokerage firm. |
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Term
| What does a "new account form" specify? |
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Definition
| At a minimum, it specifies the account owner, trading authorization, payment method, and types of securities appropriate for the customer. |
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Term
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Definition
| Financial Industry Regulatory Authority |
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Definition
| Municipal Securities Rulemaking Board |
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Term
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Definition
Set of rules that require representatives to know all essential facts about a customer's:
- current financial situation
- present holdings
- risk tolerance
- needs and objectives |
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Term
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Definition
- A determination made by a registered representative as to whether a particular security matches a customer's objectives and financial capability.
- The representative must have enough information about the customer to make this judgement. |
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