customer accounts outline

Cash account

·        Total equity=Market value + cash + money market funds

·        customer can hold Stocks/bond certificates

·        safekeeping, street name, Broker/dealer can hold customer stock/bond certificates

·        firm can NOT hypothecate, lend securities or danger the ownership of stocks/bonds

·        b/d MUST Keep securities separate and safe

A purchase of stock done regular way in a cash account shall be paid for on what day?

·        3 business days after trade

·        regular way-3 business days

·        cash transaction, same day

customer accounts outline

Seller’s/buyer’s options delivery a.k.a seller’s option delivery

·        Customer does not want to deliver or does not want to pay for securities regular way

·        Seller can delivery late 5-60 days

·        Sellers can deliver  early

New issues

·        Pay for completely when purchase

Mutual funds/variable annuities

·        Pay for completely when purchase

Uniform Gifts to Minors Act or Uniform Trust to Minors

·        Margin-NOT allowed

Trust document

·        Can decide NO margin purchases

Private placements and limited partnerships

·        No margin

Cash account

·        Total equity=Market value + cash + money market funds