Question 1
A company's regular quarterly cash dividend has a record date of Thursday. Under T+1 settlement, what is the last day to buy the stock and receive the dividend?
SIE section 3: Trading, Customer Accounts and Prohibited Activities
Twenty-three questions on how trades work, how accounts are set up and run, and what is never allowed.
| Questions | 23 of 75 (31%) |
|---|---|
| Main topics | Orders and settlement, accounts, compliance, prohibited activities |
What comes up
- Market, limit and stop orders; bid and ask; principal and agency
- T+1 settlement, dividend dates, splits and other corporate actions
- Joint, custodial, trust, retirement and margin accounts
- Money laundering, CTRs and SARs, privacy, communications and Reg BI
- Front running, insider trading, guarantees and other prohibited acts
Where marks go
- Under T+1 the ex-dividend date is the record date
- A CTR is for cash over $10,000; a SAR is for suspicious activity of $5,000 or more
- Signing for a customer is prohibited even with permission
Try 3 questions
Question 2
Two spouses hold an account as joint tenants with right of survivorship. One dies. What happens to the account?
Question 3
A trader learns a customer is about to sell 500,000 shares of a stock and sells his own shares first. This is:
Next step
Questions people ask
Is settlement T+1 or T+2 on the SIE?
Regular-way settlement for stocks and most bonds has been T+1 since 28 May 2024. Study from current material.
Can I tell a customer a SAR was filed?
No. A firm may not tell a customer that a Suspicious Activity Report was filed.