SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 58: Answer and Explanation

Question: 58

How is notice of a corporate action given?

• A. For over-the-counter shares, the SEC provides notices.
• B. For over-the-counter shares, the NYSE provides notices.
• C. For exchange-traded shares, the exchange provides notices.
• D. For exchange-traded shares, FINRA communicates the actions.

Correct Answer: C

Explanation:

C: Choice C is correct because exchanges ensure notice deadlines are met by providing notification for shares traded on that exchange. Choices A and B are incorrect because FINRA provides notices for over-the-counter shares. Choice D is incorrect because the exchange provides notification for shares traded on that exchange.