General Securities Sales Supervisor (Series10) Practice Exam

Which of the following must be included in a customer confirmation for bond trades?

1. Market fluctuations

2. Total annual fees

3. Quantity and price traded

4. Issuer's credit rating

The correct answer is: Quantity and price traded

In a customer confirmation for bond trades, including the quantity and price traded is essential because it provides the customer with specific details about the transaction. The quantity indicates how many bonds were purchased or sold, which is crucial for the customer to understand the exact volume of their investment. The price traded reveals the cost per bond, allowing the customer to assess the financial implications of the trade at the time it was executed. This information is directly relevant to the investor's transaction and is a fundamental requirement for transparency and record-keeping in the sales process. While the other options mentioned could be of interest to the customer, they are not mandatory inclusions in a trade confirmation. For instance, market fluctuations and total annual fees might affect the overall performance of the investment or future costs, but they are not specific to the individual trade being confirmed. Similarly, an issuer's credit rating, while important for assessing the risk associated with a bond, pertains more to the overall characteristics of the bond rather than the particular transaction being confirmed. Therefore, quantity and price traded stands out as essential information that must be included in a customer confirmation for bond trades.