Understanding Trading, Customer Accounts and Prohibited Activities: flashcards

All cards

Two-for-one split

Shares double, price and per-share cost basis halve. Total value unchanged.

SAR vs CTR

SAR = filed because activity is suspicious, any amount. CTR = currency threshold.

Ex-dividend date

Buy on or after it and you buy WITHOUT the dividend.

Principal vs agency

Principal = firm trades its own account. Agency = firm arranges with a third party.

Regulation S-P

Privacy: nonpublic personal information, privacy notices, safeguards.

Front running

Trading ahead of a known customer order. Distinct from backing away and marking the close.