Unit 19-Settlement

Shares held in electronic form at a clearing house under a broker-dealers account are A)in trust name. B)held in street name. C)are in custodial name. D)held in safe keeping.

B

Good delivery of a stock certificate requires all of the following except A)certificates in good condition. B)proper signatures of a firm principal on the certificate. C)the correct number of shares are delivered. D)proper endorsement by all owners.

B

On Tuesday, December 10 your customer Bought 5 OEX (S&P 100 Index) 230 March calls at four. On Tuesday, March 10 the calls are in-the-money and your customer issues exercise instructions. On what days did the trade and the exercise settle? A)December 12 and March 12 B)December 11 and March 12 C)December 11 and March 11 D)December 12 and March 11

C

Index options excercise settlement

T + 1

In an equity option exercise, the settlement is

T + 2

All options trade settlement is

T+1

separate document to be signed identifies the specific certificate (issuer, number of shares, certificate number)

stock power