🏦LTB
← Series 7: Opens & Maintains Customer Accounts
Series 7 practice questioneasyAccount Types — Individual Account

In an individual brokerage account, who is authorized to make trading decisions?

  1. AThe account holder's spouse
  2. BAny family member with knowledge of the account number
  3. COnly the account holder, unless they have granted power of attorney to another party✓ Correct answer
  4. DThe registered representative assigned to the account
Explanation

Why C — Only the account holder, unless they have granted power of attorney to another party

In an individual account, only the named account holder has the authority to make trading decisions and place orders. The sole exception is if the account holder has executed a valid power of attorney granting another person the authority to trade on their behalf. Without this authorization, no other person may direct activity in the account.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Practice Series 7 freeSeries 7 exam guide
Related Opens & Maintains Customer Accounts questions