Customer Confirmations
Chapters in this video
- 0:00 Why every trade needs a written receipt
- 1:19 Settlement date versus trade date trap
- 1:53 Required elements and the accrued interest gotcha
- 3:27 Agent versus principal: commission or markup
- 4:52 When markup disclosure is actually required
- 5:24 Callable bonds, penny stocks, and mutual fund prospectus rules
- 6:21 Rapid-fire exam recap and the Tuesday bond puzzle
What this video covers
- Why the confirmation deadline is the settlement date (not the trade date), and how that single distinction traps test-takers
- Every required element on a trade confirmation: trade date, settlement date, security identity, quantity, price, capacity, and net amount
- Why accrued interest only appears on debt confirmations and never on equity tickets
- The agent versus principal capacity distinction: commission for agents, markup or markdown for principals, and why a firm cannot act as both on the same trade
- When markup disclosure is actually required: corporate and agency debt, non-institutional customers, riskless principal transactions on the same day
- The special-case disclosure rules for callable securities, penny stocks, and mutual fund prospectus delivery
- What the net amount really represents as the bottom-line figure the customer pays or receives
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 7 course adds adaptive practice questions and spaced-repetition flashcards.