Let's spend a little time examining the information that will be asked of you to open your account. First, the usual basic information is requested, specifically, the following:

• Name
• Address
• Social Security or Employer Identification Number
• Home Telephone
• Work Telephone (if applicable)
• Date of Birth

The above information is usually requested to purchase popcorn nowadays, so these items should not come as too much of a surprise. Next, employment information is usually required, including Name of Employer, Address and Telephone and your occupation. Length of time on this job may be asked. A salary disclosure is customarily asked also in the form of an annual income query. Why, you ask? Your broker needs to determine that the type of trading that you are embarking on is in alignment with the income figure that you give.

Next, some type of client profile is taken. This information usually involves the following:

• Marital Status
• Citizenship
• Investment Experience
• Investment Objectives
• Net Worth
• Risk Tolerance
• Tax Bracket

Also, as a customer, you need to disclose whether or not you or an immediate family member is employed by a securities firm. Another important part of your profile is whether or not you or an immediate family member is a director or majority shareholder in any publicly traded company.

Your broker will probably assist you in determining at the time the account is opened how you would like to handle stock purchases and whether or not to hold the certificates in the account or ship them to you. We can address these issues in another article, but, it would behoove you to ask your broker at this time to disclose any fees associated with transfer of stocks.

Stock transfer fees vary from firm to firm, so be sure that you are apprised of these to help you make an informed decision.

All firms are mandated by the Internal Revenue Service to have a W-9 on file. The official name for this form is a "PAYER'S REQUEST FOR TAXPAYER IDENTIFICATION NUMBER AND CERTIFICATION". In other words, you are attesting by signing this form that the number you provide is your true federal social security number. All income must be reported to the IRS as must be any contributions to an IRA.

Another item that will be presented to you as a new customer is the Securities and Exchange Commission Rule 14B-1(c). Under this rule, your broker is obligated to provide your name, address and securities position to each requesting company whose securities the brokerage firm holds for you.

The Rule prohibits companies from using any information they receive except to communicate with you, the shareholder. You have the right to object to the release of this information and that objection statement is usually provided on the new account/customer agreement form.

The agreement form that you sign with your brokerage company will almost assuredly have an arbitration clause within it. This clause, in effect, allows you and your brokerage firm to use arbitration rather than a costly civil trial for dispute resolution. By signing this agreement, you, as a client waive your right to seek remedy in a court. The wording for this particular clause will also vary from firm to firm, but it is an effort to keep the costs down if any type of dispute arises between you and the brokerage firm.

Now, there it is in a nutshell. These are the things that you can expect to be asked when you open a new account. I hope these will enable you to have a terrific relationship with your new broker. If he hasn't told you, let me--we appreciate our clients. There is nothing more satisfying to me as a broker than to have a new client, well-educated and versed in how we do business. I think it gives you the client, and me, the broker, a mutual respect for each other. Happy and rewarding investing to each of you.

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