SIE practice questioneasyTrade Confirmations
After executing a trade for a customer, a broker-dealer must send a trade confirmation by:
- AThe end of the trading day
- BWithin 30 days of the trade
- CAt or before completion of the transaction (settlement)✓ Correct answer
- DNo later than the settlement date
Explanation
Why C — At or before completion of the transaction (settlement)
SEC Rule 10b-10 requires broker-dealers to send a written confirmation of each transaction at or before the completion of the transaction (settlement). The confirmation must include: the date and time of the trade, the security, quantity, price, capacity (agent or principal), commission or markup, and settlement date. This ensures customers have timely documentation of their trades for review and record-keeping.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Trading & Settlement questions
- Under FINRA's best execution rule, a broker-dealer is required to:
- Under SEC Regulation SHO, before selling a stock short, a broker-dealer must:
- An investor borrows $50,000 on margin to purchase securities. Which of the following is TRUE about the interest charged?
- Which of the following would be considered material, non-public information (MNPI)?
- A client instructs her registered representative to buy 100 shares of XYZ at the best available price as soon as…
- The Employee Retirement Income Security Act (ERISA) applies to which of the following?
- A customer wants to sell shares of ABC only if the price falls to $45 or lower. Which type of order should they place?
- A customer in a cash account buys shares and sells them at a profit before paying for the original purchase. This…