The woman was a quadriplegic and considered unemployable. Her only monthly income was her Social Security check. Her broker placed her in a series of exotic options strategies. Every customer who opens a brokerage account sits down with a sales representative and fills out a customer agreement form. This also can be done over the telephone.
Some investments are riskier than others.
For example, options trading is riskier than trading common stock. An investor interested in trading options faces more probing questions than an investor interested in trading a security. This process helps the brokerage satisfy suitability requirements. You are the only person who knows the right answers for you. These questions might be easier to answer with advice from a lawyer, bank officer, accountant, registered financial adviser, reputable financial publication, adult education programs or college courses.