Question

Under NASAA rules, if a customer wishes to trade a margin account prior to returning the signed margin agreement, such an action is:

Answer 1

Answer:

Explanation:

This action is only permitted if the customer returns the signed margin agreement promptly. Since a margin agreement is an agreement between a brokerage and a client governing a margin account and allows the client to borrow from the brokerage in order to buy securities. Without agreeing to all the details in this contract the individual cannot trade on a margin account or borrow money.