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← Series 7: Order Processing & Trade Settlement
Series 7 practice questioneasyTrade Confirmations

Under SEC rules, a broker-dealer must send a trade confirmation to a customer no later than:

  1. AThe trade date
  2. BAt or before the completion of the settlement date
  3. CAt or before the completion of the transaction (settlement)✓ Correct answer
  4. DWithin 5 business days of the trade
Explanation

Why C — At or before the completion of the transaction (settlement)

Under SEC Rule 10b-10, broker-dealers must send a written confirmation to the customer at or before the completion of the transaction (i.e., settlement). The confirmation must disclose key information including the date, time, identity and quantity of the security, price, commission or markup/markdown, and whether the firm acted as agent or principal. This ensures customers have complete transaction details in a timely manner.

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