Series 7 Exam Question 144: Answer and Explanation

Question: 144

The return of securities previously accepted for delivery is called

• A. a buy-in
• B. a sell-out
• C. reclamation
• D. rejection

Correct Answer: C

Explanation:

C. All securities traded must be in good delivery form. In the event that a purchaser accepts securities for delivery and later finds out that they weren't in good delivery form, they'll return them and expect the delivery of new securities. This process is known as reclamation.