1. Home
  2. SIE Exam
  3. SIE Practice Tests

SIE Exam Practice Question 303

Question: 303

When opening a margin account, the agreement that customers sign to pledge their securities as collateral for a loan from the broker-dealer is the

Correct Answer: A

Explanation:

A - Customers that open margin accounts must sign a hypothecation agreement to pledge their securities as collateral for loans from the broker-dealer for margin account purchases. The broker-dealer may then rehypothecate the securities to the bank, meaning that they are pledged to the bank as collateral for loans to the broker-dealer for lending to customers.

More Tests

All content of site and practice tests © 2022 Jack.
Quick View
FINRA Practice Tests