SIE practice questionmediumOpening Accounts for Entities
To open an institutional account for a corporation, the broker-dealer must obtain:
- AA copy of the corporation’s resolution authorizing the account✓ Correct answer
- BPersonal guarantee from CEO
- CBank statement
- DLife insurance policy
Explanation
Why A — A copy of the corporation’s resolution authorizing the account
A resolution is needed to ensure the corporation authorizes the account and names its agents. CEO guarantees, bank statements, or insurance are not required to open the account.
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