SIE Understanding Products and Their Risks Practice Question 35

Question: 35

Which of the following describes a requirement in FINRA Rule 2261 - Disclosure of Financial Condition?

A. When requested by a customer, the member broker firm provides its financial condition from its most recent balance sheet.

B. When a customer purchases securities representing a 10% increase in his portfolio, the broker dealer automatically provides its most recent year-to-date income statement.

C. When the member broker firm is owned by a parent company, whenever the parent company declares a dividend, the broker firm automatically provides the amount of dividend per share.

D. When a customer opens a margin account, the broker dealer discloses the total amount of loans the broker dealer has outstanding to all customers.

SIE Understanding Products and Their Risks Practice Question 35

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