Term
| Firms must retain a record of any new account or any updates for how many years? |
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Definition
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Term
| Joint Tenants with Right of Survivorship (JTWROS) |
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Definition
| With this account, the survivor retains the entire account. Sole ownership passes to the surviving tenant upon proof of death, thus avoiding probate proceedings (common with married couples). |
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Term
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Definition
| With this account, the decendent's portion is added to their estate. Ownership proportions must be established and need not be equal. All tenants signatures are required for trading activity. |
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Term
| Uniform Gift to Minors Act (UGMA) |
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Definition
| A minor account that are established under the minor's SSN, and the tax liabilities from capital gains and dividend distributions are the minor's responsibilites. The excess may be taxed at the parent's highest marginal rate even if the parent is not the donor. As soon as the minor reaches the age of majority, all of the taxable income is taxed at the minor's rate. |
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Term
| The Uniform Transfers to Minors Act (UTMA) |
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Definition
| Minor account with the option to extend the age at which the assets are available to the child beyond the age of maturity; age cannot exceed 25. |
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Term
| Gifts made to a UGMA/UTMA are: |
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Definition
1. Irrevocable (cannot take it away)
2. Indefeasible (child cannot give back) |
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Term
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Definition
| Excessive trading in time and or frequency for the sole purpose of generating commissions; a violation. |
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Term
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Definition
| With regard to mutual funds, recommending that a customer move assets among different funds without legitimate reason (in order to generate commissions); a violation. |
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Term
| • Recommending speculative securities to customers who do not have the experience or risk tolerance is in violation of ______ |
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Definition
| the standard of fair dealings. |
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Term
| 1. Requirements for Opening New Accounts |
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Definition
• Customer Name
• Physical Address
• Date of Birth
• Occupation
• FINRA association
• Account Investment Objectives
• Signature of the Principal who accepts the account
• If the customer is a corporation, partnership, or other legal entity, the a copy of the resolution, partnership agreement, or equivalent document which names the person(s) authorized to transact business on behalf of the entity. |
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Term
| Firms must have the customer verify the account information within ____ of the account opening. |
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Definition
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Term
| On an ongoing basis, customer account information must be verified every _____. |
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Definition
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Term
| ______, not profitability is the determinant of fair dealing with customers. |
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Definition
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Term
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Definition
| are required for financial firms, that monitor the operations of the firm and detect likely incidences of fraudulent activity. |
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