Chapter 19

Question 1

For terms of good delivery, municipal bearer bonds must have:

Answer 1

all unpaid coupons attached and the bonds denominated in $1,000 or $5,000 increments

Question 2

Reports trades in Nasdaq and Third Market securities

Answer 2

Trade Reporting Facility (TRF)

Question 3

An OATS report tracks an order from:

Answer 3

its receipt, to modification, to execution, or its cancellation

Question 4

The seller will make delivery after giving a one-business day notice to the buyer if:

Answer 4

FINRA’s Operation Committee fails to determine the settlement of a when-issued trade.

Question 5

A stock or bond power grants a third party (usually a BD) the ability to _____ or _____ a customer’s security.

Answer 5

transfer; re-register

Question 6

The Direct Registration System

Answer 6

Allows registered owners to hold their assets in book-entry form with the transfer agent

Question 7

For terms of good delivery, municipal registered bonds must have:

Answer 7

proper assignment and the bonds denominated from $1,000 to $100,0000 in $1,000 increments

Question 8

When a trade comparison is received by one firm but there is no corresponding trade a(n):

Answer 8

Don’t Know notice is used

Question 9

A _____ is required if a trade occurs before the ex-dividend date, but the seller delivers after the record date.

Answer 9

due bill

Question 10

The _____ date is the date by which a stock must be owners to receive the dividend

Answer 10

record

Question 11

Regular-way settlement for equity options is normally completed within:

Answer 11

One business day after the trade date