Question: 992All of the following are violations EXCEPTA. matching ordersB. freeridingC. comminglingD. hypothecating
Answer: DExplanation: Hypothecating isnÆt a violation. Hypothecation takes place when a brokerage firm lends money to a customer topurchase securities in a margin account. Question: 993Which of the following regulatory organizations has the authorityto punish registered representatives for ruleviolations?I. SECII. FINRAIII. NYSEIV. MSRBQuestion: 994Which of the following is TRUE about SIPC?Question: 995
Mike Nugent and his wife, Mary, have individual accounts withABCDE broker-dealer. Along with their individualaccounts, they alsohave a joint account with rights of survivorship. MikeÆs individualaccount has $200,000 ofstock, $50,000 of bonds, and $200,000 ofcash. MaryÆs individual account has $100,000 of stock and $400,000ofcash. In the joint account, Mike and Mary have $100,000 of stock,$350,000 of bonds, and $200,000 of cash. IfABCDE declaresbankruptcy, what would be the maximum SIPC coverage for all theaccounts?