Series 7 Exam Prep 97, Trading and Settlement Exam Traps

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- The critical difference between a stop order, which guarantees execution but not price, and a stop-limit order, which guarantees a price but not execution.

- That Regulation SHO requires a broker-dealer to locate shares for borrowing *before* executing a customer's short sale.

- How the ex-dividend date, typically one business day before the record date, is the key date for determining who is entitled to a dividend.

- The purpose of a due bill, which ensures a buyer receives a dividend they are entitled to when a trade settles after the record date.

- The ACATS transfer timeline, which requires the carrying firm to validate a transfer in one business day and move the assets within three business days.

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