Series 7 Exam Question 209: Answer and Explanation

Question: 209

Which of the following are important factors when determining the markup or commission on a municipal bond trade?

I. The fact that you're entitled to make a profit

II. The difficulty of the trade

III. The market value of the securities at the time of the trade

• A. I and II
• B. I and III
• C. II and III
• D. I, II, and III

Correct Answer: D

Explanation:

D. All the choices listed are important factors that can be used in determining the amount of commission, markup, or markdown charged on the purchase or sale of municipal securities.