General Securities Sales Supervisor (Series10) Practice Exam

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Prepare for the General Securities Sales Supervisor Exam with flashcards and multiple-choice questions. Each question includes hints and explanations to enhance your learning experience. Get exam-ready today!

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Which statement about the reporting of trades in the municipal market is TRUE?

Reporting is always immediate regardless of the transaction type
Mark-ups must always be disclosed to customers
Only agency trades require disclosure of commissions
Trade confirmations must be sent by the end of the trading day

The correct answer is: Trade confirmations must be sent by the end of the trading day

The statement that trade confirmations must be sent by the end of the trading day is correct. This requirement is in place to ensure timely communication between broker-dealers and their clients, allowing investors to have prompt access to details relating to their transactions. The aim is to maintain transparency and enable investors to track their trades effectively, thus enhancing trust in the municipal securities market. With regard to the other options, it is important to note that while immediate reporting can occur in many cases, certain transactions may have different reporting timelines depending on the type or circumstances of the trade. Not all mark-ups need to be disclosed explicitly to customers as it depends on the type of transaction and whether they are principal or agency trades. Moreover, not all transactions involve commission disclosures; only agency trades specifically require the disclosure of commissions, making the broad statement about all trades inaccurate.