Canadian Securities Course (CSC) Practice Exam · Question
According to CIRO Rule 3206 and other regulations, which of the following is required before an investment dealer can open a margin account for a client?
Clients must sign a margin agreement to acknowledge the terms, conditions, and risks associated with borrowing to purchase securities on margin, as per CIRO req
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Question: According to CIRO Rule 3206 and other regulations, which of the following is required before an investment dealer can open a margin account for a client?
Answer options: ✅ The client must sign a margin agreement.
- The client must have at least $50,000 in liquid assets.
- The dealer must obtain approval from CIRO for each new margin account.
- The client must successfully complete a derivatives knowledge test.
Correct answer: The client must sign a margin agreement.
Explanation: Clients must sign a margin agreement to acknowledge the terms, conditions, and risks associated with borrowing to purchase securities on margin, as per CIRO requirements.
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