Series 10 Exam Question 26: Answer and Explanation

Question: 26

A broker dealer carrying customer accounts and providing credit to customers for margin purposes may jointly pledge customers' securities as joint collateral:

• A. Under no circumstances.
• B. Only if it benefits the customers by offering them a lower interest rate.
• C. Only if the margin loans are amortized.
• D. If all parties agree in writing.

Correct Answer: D

Explanation:

A firm may only jointly pledge customers' securities as joint collateral if all parties agree in writing.