Finra Exam Series-6 Topic 7 Question 92 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 92
Topic #: 7

Anna Vestor placed an order to sell 100 shares of Microsoft through the on-line site of her broker, GetErDone Broker-Dealers. GetErDone sold her shares for $24.59 a share and charged her a commission of $8.95. Among other things, the trade confirmation that Anna receives must stipulate:

i. the time and date of the transaction.

ii. that GetErDone served as a principal in the transaction.

iii. the number of shares sold and the price at which they were sold.

IV. the exchange or ECN on which the transaction was executed.

AI and III only

BI, II and III only

CI, III, and IV only

DI, II, III, and IV

Show Suggested Answer

Suggested Answer: A

Among other things, the trade confirmation that Anna receives must stipulate the items described in Selections I and III only. The trade confirmation that Anna receives from GetErDone must stipulate the time and date of the transaction, the number of shares sold, and the price at which they were sold. The exchange or ECN on which the transaction was executed is not provided on the confirmation statement. Whether GetErDone acted as a principal or a broker in the transaction does need to be stipulated, but in this instance GetErDone acted as a broker, not a principal. GetErDone did not itself buy the shares from Anna.

by Monroe at Oct 21, 2024, 10:01 AM

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27 days ago

The correct answer is D. The trade confirmation must include all the information mentioned - the time and date, that the broker acted as a principal, the number of shares and price, and the exchange or ECN.

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Alaine

9 days ago

I picked option C, but now I see that the correct answer is D. Thanks for clarifying!

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Catalina

13 days ago

I chose option D as well. It seems like the trade confirmation must include all of that information.

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