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Flashcards in Chapter 9 Order Processing and Trading Markets Deck (35)
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31

9-6 Which TWO of the following functions is a primary responsibility of the purchase and sales department?

I Record execution
II Wire funds to settle trades
III Provide the inside market
IV Create client confirms

D

I Record execution

IV Create client confirms

32

9-7 Broker-dealers must send a client a trade confirmation when:



C. at or prior to settlement date

33

9-8 Commissions and markups are required to be:

C. Fair and reasonable in relation to current market conditions

34

9-9 The prohibited practice of splitting orders includes a broker-dealer performing all of the following choices, EXCEPT:

Examples of splitting:
a. Dividing larger order into smaller orders for execution
b. Dividing one execution into multiple executions
d. Practicing trade shredding


b is interpositioning - Inserting a third party between the customer and the best market price to the detriment of the customer

35

9-10 Which of the following choices is NOT a form of market manipulation?

a. At-the-opening
b. Capping
c. Pegging
d. Use of rumors

a. At-the-opening is NOT a form of market manipulation.

It is an order that client places which requests a purchase or sale be executed at the opening price