In a proceeds transaction: I. a customer directs that a position be sold; and the funds generated from the sale be used to buy a

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In a proceeds transaction: I. a customer directs that a position be sold; and the funds generated from the sale be used to buy a

nother position II. a customer sells short securities "against the box" III. 2 separate mark-ups or commissions are charged IV. a combined mark-up or commission is charged

Business

1 answer:

Serggg [28] · Answer 1 · 2022-02-15T18:41:49+03:00

Answer:

I and IV

Explanation:

A proceed transaction is a type of transaction in securities where a broker uses the proceeds of the sales of a security to buy another security , still constituting a transaction. (option 1)

A proceed transaction is subjected to a combined mark - up or commission , where the mark up earned on the disposed security is added to the mark up earned on the new security bought in replacement , which must be reasonable and fair. (option iv)