In a cash account, a customer must pay for securities by the required payment date. If the customer fails to pay and the broker-dealer liquidates the position, the customer's cash account is restricted for 90 days under Regulation T. During the restricted period, the customer may still purchase securities, but only if sufficient settled cash is in the account before the trade is accepted. Choice C is correct. Choice A is incorrect because the customer is not limited only to closing transactions; rather, purchases must be fully paid in advance during the restriction period. Choice B is incorrect because the restriction period is 90 days, not 30 days. Choice D is too broad because the question asks about the customer's account, not automatically all related accounts. The SIE outline includes account types, margin and cash account concepts, trade settlement, and Federal Reserve Board Regulation T. This question tests cash account payment failure and the consequence of freeriding or failure to pay in a timely manner. Reference: Understanding Trading, Customer Accounts and Prohibited Activities; Customer Account Types; Trade Settlement; Federal Reserve Board Regulation T.

Step by Step Explanation:
Temporary Hold Period: Under FINRA Rule 2165, a firm can initially place a hold on disbursements for up to
10 business days if financial exploitation is suspected.
Additional Holds: The period may be extended by an additional 10 business days if warranted and allowed by state law.
Incorrect Options:
A & B: These are shorter than the permissible period.
D: The initial hold period is capped at 10 business days.
FINRA Rule 2165 (Financial Exploitation of Specified Adults): FINRA Rule 2165.

Step by Step Explanation:
* Ex-Dividend Date Pricing: On the ex-dividend date, the mutual fund's price is adjusted downward by the amount of the dividend.
* Closing Price: $10.00
* Dividend: $0.25
* Adjusted Opening Price: $10.00 - $0.25 = $9.75.
* Incorrect Options:
* A: $9.25 subtracts more than the dividend amount.
* C: $10.00 does not reflect the dividend adjustment.
* D: $10.25 adds to the price rather than subtracting the dividend.
SEC Guidance on Mutual Fund Pricing: SEC Mutual Funds.

Step by Step Explanation:
FINRA Rule 1122: Requires that registered representatives update their residential address with FINRA for two years post-termination.
Purpose: This ensures accurate records for potential regulatory inquiries during the statutory two-year period when a terminated individual remains subject to FINRA's jurisdiction.
FINRA Rule 1122 (Filing False or Misleading Information): FINRA Rule 1122.