Question

A newly registered representative would like to open a margin account for himself at his employer's firm and day trade security positions. Under security industry regulations:[A] This would not be allowed under any circumstances.[B] This would be allowed if the registered representative's transactions were reviewed and ENDORSED by a principal of the firm.[C] This would be allowed if the registered representative's transactions were reviewed and approved prior to entry by a principal of the firm.[D] This would be allowed without any restrictions.

Answer 1

Answer:

B. This would be allowed if the registered representative's transactions were reviewed and ENDORSED by a principal of the firm.

Explanation:

The industry regulation states for the businesses to maintain a level of reasonable security and also that the organizations required security practices also to extend among the business partners.

In the context, for a newly representative who wishes to open an account, the industry regulations allowed the transaction of the registered representative to be received and to be endorsed by any principal of the firm, but not prior to any entry.