Finra Exam Series-6 Topic 7 Question 80 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 80
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 Garry at Jun 19, 2024, 03:31 PM

Limited Time Offer

25%

Off

Get Premium Series-6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Deeanna

5 months ago

Well, at least Anna's broker has a sense of humor, even if they have to follow the regulations. The name 'GetErDone' is pretty classic.

upvoted 0 times

Miles

4 months ago

Agreed. It's all about transparency and making sure investors have the information they need to make informed decisions.

upvoted 0 times

...

Alexis

4 months ago

Yeah, I agree. The time and date of the transaction, number of shares sold, and the exchange or ECN should definitely be included in the trade confirmation.

upvoted 0 times

...

Noemi

4 months ago

I think the answer is C) I, III, and IV only.

upvoted 0 times

...

Anisha

4 months ago

Definitely, and it should also have the number of shares sold and the price at which they were sold. That way, everything is transparent.

upvoted 0 times

...

Angelyn

4 months ago

Yeah, it's important for investors to have all the information about their transactions. I think the confirmation should include the time and date of the transaction.

upvoted 0 times

...

Markus

4 months ago

I know, that name is pretty funny. But it's good that they have to provide all the details on the trade confirmation.

upvoted 0 times

...

Helga

5 months ago

I'm not sure, but I think it's important for investors to know all the details of their transactions.

upvoted 0 times

...

Corrina

6 months ago

Haha, GetErDone Broker-Dealers? That's gotta be the funniest broker name I've ever heard. But they still need to follow the rules and disclose everything.

upvoted 0 times

...

Dahlia

6 months ago

I agree with Samantha. The trade confirmation has to provide a complete record of the transaction, not just some of the details.

upvoted 0 times

Krissy

5 months ago

D) I, II, III, and IV

upvoted 0 times

...

Fabiola

5 months ago

D) I, II, III, and IV

upvoted 0 times

...

Graciela

6 months ago

I agree with Claribel, because the trade confirmation should include all those details for transparency.

upvoted 0 times

...

Quentin

6 months ago

The correct answer is D. The trade confirmation must include all the information listed, including the time and date, that GetErDone was the principal, the number of shares and price, and the exchange or ECN used.

upvoted 0 times