4. Understand clearing, settlement and custody principles and practice relevant to client investment activity (4) Flashcards
4.1 Explain the principles and practices of clearing, settlement and custody.
1
Q
Dividends with options
A
Scrip dividends - div in the form of new shares (dilutes existing). quicker
Dividend reinvestment plans - div to buy existing shares (does not). takes longer
2
Q
Stages of stock settlement
A
- trade matching
- stock move
- cash move
- register update
3
Q
order types
A
- at best - no of shares at best
- limt - no of shares at buffer price
- execute and eleminate - best, or better than. remainder deleted
- fill or kill - filled at best or better than. deleted
- iceberg - specified portion publicly visible
