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ACI

3I0-012 · Question #316

What should be done if a broker fails to conclude a transaction at the quoted price and the dealer has to accept a lesser quote to neutralize his risk?

The correct answer is B. accept a bank transfer compensation payment in favour of the bank or adjustment to brokerage bills. See the full explanation below for the reasoning.

Question

What should be done if a broker fails to conclude a transaction at the quoted price and the dealer has to accept a lesser quote to neutralize his risk?

Options

  • A`stuff' the broker and insist on a replacement name at the original price
  • Baccept a bank transfer compensation payment in favour of the bank or adjustment to brokerage bills
  • Crefuse any sort of compensation from the broker for the amount concerned
  • Dacknowledge the excuses of the broker and accept his offer of entertainment in compensation for the failed

How the community answered

(28 responses)
  • A
    4% (1)
  • B
    82% (23)
  • C
    11% (3)
  • D
    4% (1)

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Full 3I0-012 Practice