SIE practice questionmediumOptions Accounts and Suitability
A customer applies for an options account. What must the firm consider before approval?
- AWhether the customer has a joint account
- BThe customer’s investment experience and financial situation✓ Correct answer
- CThe customer’s exact annual income only
- DIf the customer has purchased IPOs
Explanation
Why B — The customer’s investment experience and financial situation
Firms must assess experience and financial details for suitability. B, C, and D are either not primary factors or too narrow.
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