Introduction

The Online Brokerage Environment

Online Account Activity

Online Fraud

Complaints In the Online Environment

Execution Problems

The Changing Role of Customer Service Representatives

Customer Identification Requirements and Anti-Money Laundering Rules

Additional Due Diligence When Opening Accounts

Suitability In The Online Brokerage Environment

When is a Communication a Recommendation

Online Communications

Disclosures Related to Online Securities Transactions

Day Trading

Which Firms are Subject to Day Trading Rules

Risk Disclosure Statements For Day Trading

Sample Day Trading Risk Disclosure Statements

Decimalization

Listed Securities

NASDAQ (OTC) Securities

Options

Immediate Impact of Decimalization

Summary

Orders And Trading Terminology

Initiating The Order

Basic Order Information

Types of Orders

By Type

By Special Type

By Time

By Unit

Decimalization and Order Types

Review Of Options

Call Options

Selling (Writing) Call Options

Put Options

Options Are Expiring Assets

Additional Option Terminology

Spreads and Straddles

Margin Accounts And Margin Calls

NASD Rule 2341: Margin Disclosure Statement

Short Sale Rules In The Online Brokerage Environment

Background of Inadvertent Short Sales

The Bid Test Rule

Conclusion

Online Brokerage Customer Service Quiz