Answer: D

Rationale: When a customer opens an individual account, the following must be present on the new account form: • Customer name and address • Whether the customer is of legal age • Name of registered rep who will handle the account • Principal’s signature

Answer: C

Rationale: The Securities Act of 1933 is sometimes called the Paper Act because it deals with the registration of securities themselves, rather than the registration of those who work with securities. New issues of securities must be registered with the SEC, unless they are exempt from the Securities Act.

Answer: B

Rationale: The custodian bank always safekeeps the assets and usually acts as both paying agent and transfer agent. Therefore, sending dividends and proxies to shareholders would fall to the custodian. The custodian does not manage the fund, nor does it choose the manager. The manager's contract is voted on annually by the shareholders.

Answer: A

Rationale: The purchaser of a call (long call) has the right to buy stock at a fixed price, no matter how high the market price of the stock may go. This strategy has unlimited gain potential.