Account Types
When a customer opens an options account, the firm must verify certain information on the options agreement. Which of the following is NOT typically verified by the firm?
Options account verification focuses on financial capability and experience, not personal family details.
Complete Analysis & Legal Rationale
When verifying an options agreement, firms typically verify financial information such as income, net worth, investment experience, and employment status. The number of dependents, like marital status, is not a standard verification item for options account approval.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Annual income is verified as it indicates the customer's ability to bear potential losses.
Employment status is verified as part of the customer's financial profile.
Matches the verified teaching point in the explanation.
Investment experience is crucial for determining options suitability.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.