Customer Agreements: Rapid Fire
Chapters in this video
- 0:00 Cash account rules: no signature required
- 1:14 Account records, trusted contact person, and the 30-day follow-up clocks
- 3:12 Margin accounts: the signed agreement, risk disclosure, and three components
- 4:05 Margin math: Reg T initial, FINRA maintenance, and the $2,000 floor
- 5:49 Options clocks: ODD delivery at or before approval, ROP requirement
- 6:52 Dual 15-day deadlines and options pricing shorthand
- 7:27 Registration effective versus approved: the guarantee trap
- 9:08 Rapid-fire exam recap
What this video covers
- The cash account trap: why principal approval is required but a customer signature is not
- Margin account math: Regulation T's 50% initial margin, FINRA's 25% long maintenance, and the steeper short requirements below $5 per share
- The three margin agreements: which two are strictly required (credit and hypothecation) and which one is optional (loan consent)
- Options document timing: why the Options Disclosure Document (ODD) must be delivered at or before approval, not after
- The dual 15-day clocks for options: customer returns signed agreement, firm sends information for verification
- Why registration becomes effective but is never approved, and what agents may and may not say about it
- The prohibited guarantee rule: what counts as a guarantee even without the word itself, and why sharing in customer losses is barred
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