Other Accounts/Trading

Question 1

T/F: The confirmation of a bond trade must show whether the BD acted as an agent or principal, and also the address of the BD.

Answer 1

True

• BD must always disclose capacity in which it acted
• The name, address, and telephone number of the broker-dealer must be shown so a customer may contact the firm easily

Question 2

Time frame for a “wash sale”

Answer 2

30 days

If buy “substantially identical” securities within 30 days of selling for a loss, loss doesn’t count