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A hypothecation agreement gives the broker-dealer the right to engage in which of the following...

A hypothecation agreement gives the broker-dealer the right to engage in which of the following activities?

A.

Sharing customers' nonpublic personal information with nonaffiliated third parties

B.

Entering trades in a customer's account without prior authorization from the customer

C.

Selling a customer's securities when the customer has failed to pay for trades in a cash account

D.

Using securities that a customer has bought on margin as collateral to obtain a loan from a bank

FINRA SIE Summary

  • Vendor: FINRA
  • Product: SIE
  • Update on: Jan 2, 2026
  • Questions: 188
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