Finra Exam Series-7 Topic 5 Question 32 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 32
Topic #: 5

If a customer fails to pay for securities purchased in a cash account, the member firm broker will do which of the following?

Agrant an extension for a bona fide reason

Bplace the securities temporarily in a general account

Cpurchase the securities for the firm's error account

Dliquidate the securities or otherwise cancel the transaction

Show Suggested Answer

Suggested Answer: D

liquidate the securities or otherwise cancel the transaction. Reg T requires the position closed if the customer fails to comply with the rules. An extension may be granted, but not by the member firm. Only an exchange or the FINRA grants extensions for bona fide reasons.

by Fausto at May 04, 2022, 05:54 AM

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