Hypothecation Agreement: Required for margin accounts, it authorizes the broker-dealer to use the customer ' s margin securities as collateral to secure loans for funding customer transactions.
Incorrect Options:
A: Sharing customer information is regulated under privacy rules (Regulation S-P).
B: Unauthorized trading violates securities laws.
C: Selling unpaid securities in cash accounts pertains to Regulation T, not hypothecation agreements.
FINRA Margin Account Rules: FINRA Rule 4210.
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