Brokerage Support Services Flashcards
In a seller’s option, securities may be delivered before the date specified if the seller
gives 1 day’s written notice to the buyer.
Under FINRA rules, delivery on a seller’s option can be made no sooner than the:
4th business day following the transaction.
All of the following statements regarding customer confirmations are true EXCEPT:
the customer must receive the confirmation no later than the business day after the trade.
If a buyer cannot pay for a trade within five business days from the trade date, the broker/dealer may request an extension from its designated examining authority (DEA). Regarding extensions, all of the following are TRUE EXCEPT:
introducing broker/dealers who do not clear their own trades may request extensions for their customers directly from the DEA.
A customer buys a municipal bond regular way on Tuesday, December 23. The transaction will settle on the following:
Monday.
If a contract calls for a delivery between brokers of 500 shares of stock, all of the following trading units would be good delivery EXCEPT:
10 certificates for 30 shares each and 4 certificates for 50 shares each.
A customer has sold 300 shares of ABC and has sent you 3 100-share certificates, one of which has not been endorsed. Which of the following actions should be taken?
Send the customer a stock power for the missing endorsement.
Which of the following interdealer trades does NOT settle in clearinghouse funds?
U.S. government bonds.
Which of the following is NOT good delivery for 470 shares of stock?
2 100-share certificates and 3 90-share certificates.
If a member firm acting as a proxy solicitor for LRK Corporation is given a shareholder list by LRK, which of the following statements is TRUE?
The member firm cannot use the list for any purpose other than to solicit proxies.
Which of the following trades settle next business day?
I. U.S. government debt.
II. Listed options.
A client with no ABC shares in his account wants to place an order to sell long 200 shares of ABC stock. Which of the following must a representative determine before accepting the order?
Where the stock is currently held and whether it can be delivered in 3 business days.
If a customer fails to return a proxy statement to a member firm by the 10th day before the annual meeting, the member may vote the shares:
provided the matters to be voted on are of minor importance.
If your client has a certificate registered in his own name, to be a good delivery, the certificate must be accompanied by:
a properly-executed assignment to the brokerage firm on the reverse side of the certificate.
Government agency securities settle:
the third business day.
