Match each trade settlement concept, confirmation requirement, or corporate action on the left with its accurate regulatory rule or operational definition on the right.
- Ex-Dividend DateSet by SRO rules as one business day prior to the record date, on which stock trades without the entitlement to a declared dividend.
- Regular-Way SettlementThe operational timeline occurring on T+1 for corporate equity, municipal bond, and Treasury transactions.
- Broker-Dealer Capacity DisclosureA mandatory written trade disclosure identifying whether the firm acted as an agent (broker) or principal (dealer).
- Reverse Stock SplitA corporate action that proportionally decreases total shares outstanding while increasing the per-share market price.
Answer
The terms match their respective concepts as follows: Ex-Dividend Date matches the SRO-determined date one business day prior to record date; Regular-Way Settlement matches the T+1 operational timeline for securities trades; Broker-Dealer Capacity Disclosure matches the confirmation requirement identifying agency vs. principal role; and Reverse Stock Split matches the corporate action that decreases share count while increasing per-share price.
Each left-side concept correctly maps to its governing regulatory definition: the ex-dividend date occurs one business day before record date; regular-way settlement occurs on T+1; trade confirmations require disclosing agency versus principal capacity; and reverse splits reduce total shares while raising share price proportionally.
Step-by-Step Solution
Key Concept
Settlement timelines (T+1), SRO ex-dividend rules, trade confirmation disclosures, and stock split corporate actions.
Estimated Time:1m 30s