700-821 Exam Questions and Answers

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NEW QUESTION: 1
Anna Vestor placed an order to sell 100 shares of Microsoft through the on-line site of her broker,
GetErDone Broker-Dealers. GetErDone sold her shares for $24.59 a share and charged her a
commission of $8.95.Among other things, the trade confirmation that Anna receives must stipulate:
I. the time and date of the transaction.
II. that GetErDone served as a principal in the transaction.
III. the number of shares sold and the price at which they were sold.
IV. the exchange or ECN on which the transaction was executed.
A. I and III only
B. I, II, III, and IV
C. I, II and III only
D. I, III, and IV only
Answer: A
Explanation:
Among other things, the trade confirmation that Anna receives must stipulate the items
described in Selections I and III only. The trade confirmation that Anna receives from GetErDone must
stipulate the time and date of the transaction, the number of shares sold, and the price at which they were
sold. The exchange or ECN on which the transaction was executed is not provided on the confirmation
statement. Whether GetErDone acted as a principal or a broker in the transaction does need to be
stipulated, but in this instance GetErDone acted as a broker, not a principal. GetErDone did not itself buy
the shares from Anna.


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