Series 7 - General Securities Representative Exam

Preview Mode

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.

Pricing