Series 7 Exam Question 309: Answer and Explanation

Question: 309

Jameson and Johnson Securities sent Alyssa a confirmation of her latest trade of Johnstone Corporation common stock. Which of the following items should be on the confirmation?

I. The trade date and the settlement date

II. Whether Jameson and Johnson acted as an agent or a principal

III. The name of the security and how many shares were traded

IV. The amount of commission paid if Jameson and Johnson acted as an agent

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

Correct Answer: D

Explanation:

D. When a client receives a trade confirmation (receipt of trade), the confirmation must show the trade date, settlement date, the name of the security, how many shares were traded, whether the broker-dealer acted as an agent or principal, and the amount of commission if traded on an agency basis.