Discuss Finra Series-6 Exam Topic 10 Question 24

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

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.

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11 comments · newest first

Bethanie 1 year ago

Seems like a lot of info for a simple trade, not sure about that.

Erasmo 1 year ago

Definitely need all four details for clarity.

Claudio 1 year ago

Wait, does it really need to specify the exchange?

Tiara 1 year ago

I think they need to mention the broker's role too.

Annmarie 1 year ago

Gotta have the time and date on the confirmation.

Jennifer 1 year ago

I definitely remember that the time and date of the transaction are crucial, but I’m not sure if we always need to include the exchange or ECN.

Vivienne 1 year ago

I’m a bit confused about whether GetErDone being a principal is essential for the confirmation. I feel like it might be important, but I can't recall clearly.

Josefa 1 year ago

I remember we discussed the importance of trade confirmations in class, but I'm not entirely sure if all four points are necessary.

Leonard 1 year ago

I think I practiced a similar question where we had to identify required elements on a trade confirmation. I feel like all four points might be needed here.

Rhea 1 year ago

Okay, let's see. For credential rotation and loosely connected devices, I'm pretty sure we'd need the PTA component. But I could be wrong, so I'll double-check my notes just to be sure.

Alpha 1 year ago

Based on the description, I think keyword density is the correct term. I'll go with that option.

Finra Series-6 Exam - Topic 10 Question 24 Discussion