Series 7 - General Securities Representative Exam
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A broker-dealer received a confirmation for a sale of securities that it does not recognize. What can the broker-dealer do?
File for arbitration
A
Respond with a DK notice
B
Negotiate a settlement
C
Exercise any open options contract against it immediately
D
Explanations
A DK Notice (don't know notice) is filed by the receiving party that does not recognize the transaction. Resolution of an unrecognized trade should happen as quickly as possible.