Match each corporate action rule or trade confirmation requirement to its correct FINRA/SEC regulatory definition under regular-way settlement standards.
- Ex-dividend date for a standard quarterly cash dividend under regular-way settlementOne business day prior to the record date, as established by SRO rules for standard settlement cycles
- Ex-dividend date for a stock dividend or stock split involving 25% or more of outstanding sharesThe first business day following the payable date, with due-bills attached during the intervening period
- Trade confirmation disclosure requirement when a firm executes a customer order from its own inventory as a dealerMust state principal capacity and disclose the total dollar markup or markdown charged to the customer
- Trade confirmation disclosure requirement when a firm executes a customer order on an exchange as a brokerMust state agency capacity and disclose the exact dollar amount of commission charged for the transaction
Cevap
Standard cash dividend ex-dates occur one business day prior to the record date under T+1, whereas large stock distributions (>25%) have ex-dates set to the business day after the payable date. Broker-dealers acting as principal must disclose principal capacity and markups/markdowns, while those acting as agent must disclose agency capacity and commissions.
Under regular-way settlement (T+1), a standard cash dividend ex-dividend date is one business day prior to the record date. For large stock splits or stock dividends (25% or greater), the ex-dividend date is deferred to the first business day following the payable date to accommodate due-bill trading. Regarding trade confirmations under SEC Rule 10b-10 and FINRA rules, a firm acting as principal sells out of inventory and must disclose its dealer capacity along with the markup/markdown. A firm acting as agent executes orders on behalf of others and must disclose its broker capacity along with the exact commission charged.
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Anahtar Kavram
Settlement cycles (T+1), ex-dividend date determination rules (cash vs large stock splits), and broker-dealer confirmation capacity disclosures.
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