High School

If a municipal securities dealer accepts a put bond for tender from a customer but does not send a confirmation, which of the following statements regarding this omission is true?

A. It violates the rules because the dealer's acceptance of put bonds for tender from the customer is a transaction that must be confirmed.

B. It does not violate the rules because a customer tendering put bonds at the put price must request a confirmation in writing.

C. It violates the rules because a confirmation of the transaction is required for the dealer's transactional records.

D. It does not violate any rules because the customer tendered the bonds and the dealer redeeming them is not engaging in a transaction.

Answer :

Final answer:

When a municipal securities dealer accepts a put bond for tender from a customer, a confirmation of the transaction is indeed required as a part of the dealer's transactional records. Omitting it is a violation.

Explanation:

In this scenario, the correct answer is option C: It violates the rules because a confirmation of the transaction is required for the dealer's transactional records.

This means that when a municipal securities dealer accepts a put bond for tender from a customer, they must send a confirmation to conform lawfully. This confirmation is crucial as it serves as an official record of the transaction. Therefore, omitting it can be regarded as a violation.

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