Series 24 Unit 11
Seller's Option - correct answer ✔A type of settlement that can occur if the
seller, for good reason, will be unable to deliver the securities to the buyer by
the regular way settlement date. If granted by the buying dealer, the seller can
make delivery on or before the date the option expires
Intention to Deliver - correct answer ✔Written notice that a seller must give a
buyer, this notice must be given at least one business day before making
delivery
Ex-clearing - correct answer ✔Settled trades broker to broker without using
the services of a registered clearing agency, instead using paper
When-Issued Contract (WI) - correct answer ✔A written agreement between
members to buy or sell a security before its issuance. These trades are settled
ex-clearing, so paper confirmations are required
European only market maker - correct answer ✔Registration that means
they can quote the stock from 3:30 AM to 9 AM ET, the European session
International service market maker - correct answer ✔Market is good not
only for the European session but for the domestic session as well
Approved affiliate - correct answer ✔A broker dealer that is not a FINRA
member, Authorized to conduct business in the UK and controlled by,
controls, or is under common control with a member. Limited to European only
registration
, Continuous Net Settlement (CNS) - correct answer ✔An automated book
entry accounting system that centralizes trade settlement and maintains an
orderly flow of security and money balances. It is operated by the national
securities clearing corporation.
Cash settlement transactions - correct answer ✔Requires delivery of
securities from sellers and payment from buyers on the same day the trade is
executed, must be finalized on or before 2:30 PM ET
A customer selects one member firm to provide for financing in custody of
securities, while orders to buy or sell are placed with executing brokers. This
is an example of a what? - correct answer ✔A prime brokerage account
Form 8-K - correct answer ✔the report used by publicly traded companies to
disclose any material event not previously reported that is important to
investors
Rule 10b5-1 Plans - correct answer ✔Permits directors and other major
insiders in a company to establish a written plan that spells out when they can
trade shares. It is set up this way so they can make these transactions when
they are not in possession of MNPI
Fines levied for insider trading violations must be paid to who? - correct
answer ✔The US Treasury
Under SEC rule 10 B - 18, safe harbor guidelines are provided to an issuer
buying back its own stock in the open market if the issuer... - correct answer
✔Is not involved in the first transaction of the day or in any purchase during
the last half hour of trading
Seller's Option - correct answer ✔A type of settlement that can occur if the
seller, for good reason, will be unable to deliver the securities to the buyer by
the regular way settlement date. If granted by the buying dealer, the seller can
make delivery on or before the date the option expires
Intention to Deliver - correct answer ✔Written notice that a seller must give a
buyer, this notice must be given at least one business day before making
delivery
Ex-clearing - correct answer ✔Settled trades broker to broker without using
the services of a registered clearing agency, instead using paper
When-Issued Contract (WI) - correct answer ✔A written agreement between
members to buy or sell a security before its issuance. These trades are settled
ex-clearing, so paper confirmations are required
European only market maker - correct answer ✔Registration that means
they can quote the stock from 3:30 AM to 9 AM ET, the European session
International service market maker - correct answer ✔Market is good not
only for the European session but for the domestic session as well
Approved affiliate - correct answer ✔A broker dealer that is not a FINRA
member, Authorized to conduct business in the UK and controlled by,
controls, or is under common control with a member. Limited to European only
registration
, Continuous Net Settlement (CNS) - correct answer ✔An automated book
entry accounting system that centralizes trade settlement and maintains an
orderly flow of security and money balances. It is operated by the national
securities clearing corporation.
Cash settlement transactions - correct answer ✔Requires delivery of
securities from sellers and payment from buyers on the same day the trade is
executed, must be finalized on or before 2:30 PM ET
A customer selects one member firm to provide for financing in custody of
securities, while orders to buy or sell are placed with executing brokers. This
is an example of a what? - correct answer ✔A prime brokerage account
Form 8-K - correct answer ✔the report used by publicly traded companies to
disclose any material event not previously reported that is important to
investors
Rule 10b5-1 Plans - correct answer ✔Permits directors and other major
insiders in a company to establish a written plan that spells out when they can
trade shares. It is set up this way so they can make these transactions when
they are not in possession of MNPI
Fines levied for insider trading violations must be paid to who? - correct
answer ✔The US Treasury
Under SEC rule 10 B - 18, safe harbor guidelines are provided to an issuer
buying back its own stock in the open market if the issuer... - correct answer
✔Is not involved in the first transaction of the day or in any purchase during
the last half hour of trading
