Brokerage firm departments

Question 1

What is the responsibility of the Order Department?

Answer 1

Receives orders from reg. rep; verifies order and transmits order to exchange or OTC for execution

Question 2

What is the responsibility of the Purchase and sales department?

Answer 2

Preps customer confirm to be sent no later than business day after trade; trad is recorded in P&S ledgers

Question 3

What is the responsibility of the Margin department?

Answer 3

Responsible for cust. account records, stock positions, dr and cr balances in customer accounts

Question 4

What is the cashier’s responsibility?

Answer 4

Receives and delivers cash and securites

Question 5

What is the responsibility of the Proxy department?

Answer 5

margin customers securities are held in street name; broker firm mails voting materials to beneficial owners

Question 6

What is the responsibility of the Re-organization dept?

Answer 6

Notifies customers of takeover/tender offers or bonds being called. Any unusual situation affecting customer should be communicated by this dept