Question

You are an RR and one of your fellow RRs decides to open an online trading account with an unaffiliated firm because the transaction fees are lower with their online services. Of the following, which are correct regarding NYSE regulations on this type of situation?I. Only margin accounts must abide by NYSE regulations.II. Regardless of whether it is a margin account or a cash account, the NYSE regulations must be followed.III. The employing firm must receive duplicate statements and confirmations.IV. The employing firm must consent to the opening of the account and must do so in writing.

Answer 1

The correct answer is II. Regardless of whether it is a margin account or a cash account, the NYSE regulations must be followed.III. The employing firm must receive duplicate statements and confirmations.IV. The employing firm must consent to the opening of the account and must do so in writing.

Step-by-step explanation:

The NYSE is the largest and oldest stock exchange in the United States.

It is a market based on the orders of investors, it works with a continuous auction system. To understand how the stock market works, we must know that the stock market does not control the prices of the securities but that its objective is to assure investors of the existence of an orderly and fair market.

The indices that make up the NYSE are the following:

• Nyse Composite Index New
• Nyse Us 100 Fund
• Dow Jones Industrials 30 Stock
• S&P 500 Index