Series 7 practice questionmediumTrade Confirmations — Required Disclosures
Which of the following is NOT required to be disclosed on a customer's trade confirmation?
- AWhether the firm acted as agent or principal
- BThe customer's total portfolio value✓ Correct answer
- CThe settlement date of the trade
- DThe amount of commission charged (for agency trades)
Explanation
Why B — The customer's total portfolio value
Under SEC Rule 10b-10, trade confirmations must include the date and time of the transaction, the security's identity and quantity, the price, the firm's capacity (agent or principal), commission or markup/markdown, and the settlement date. The customer's total portfolio value is not required on a trade confirmation; that information appears on account statements. Trade confirmations are transaction-specific documents, not portfolio summaries.
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