FINRA Securities Industry Essentials Exam (SIE) SIE Question # 15 Topic 2 Discussion
SIE Exam Topic 2 Question 15 Discussion:
Question #: 15
Topic #: 2
A confirmation indicates a 100-share purchase of Company ABC at $11. According to SEC rules, which of the following information is required to be stated on the confirmation?
A.
The firm's cost basis in the security
B.
The firm's inventory level at the time of trade execution
C.
That the firm did not act as a market maker in the security
D.
The capacity in which the firm acted when executing the trade
SEC Rule 10b-10: Requires trade confirmations to disclose the capacity in which the firm acted (e.g., as agent or principal) and details like trade price, quantity, and commissions.
Incorrect Options:
A: Cost basis is not disclosed on trade confirmations.
B: Inventory levels are not part of the required disclosures.
C: Market maker status is not explicitly required in the confirmation.
Chosen Answer:
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