Series 7 Exam Question 238: Answer and Explanation
Question: 238
To process an ACAT, a brokerage firm must be a member of the
- A. FINRA
- B. NSCC
- C. SIPC
- D. DRS
Correct Answer: B
Explanation:
B. To process an ACAT (Automated Customer Account Transfer), a brokerage firm must be a member of the NSCC (National Securities Clearing Corporation). When a brokerage firm is a clearing firm, the firm is assuming financial responsibility if a customer does not pay for a trade or does not deliver certificates that are sold.
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