SIE (Securities Industry Essentials) Practice Exam

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A customer has a cash balance in her account together with long positions in several securities. She has made no securities transactions in the account during the past 18 months. How often must the firm send her an account statement?

Monthly
Quarterly
Biannually
Annually

The correct answer is: Quarterly

Customer account statements are required to be sent out by firms on a quarterly basis. This means that the customer will receive a statement every three months, or four times a year. Although the customer may have securities in her account, if there have been no transactions made in the past 18 months, it is not required for the firm to send monthly statements as there is no activity to report. Biannually, or every six months, and annually, or once a year, are also incorrect answers as they do not align with the requirement for quarterly statements.