Securities Trader Representative (Series 57) Practice Exam

Which document records the details of a securities transaction at a broker-dealer?

1. Confirmation statement

2. Brokerage agreement

3. Trade ticket

4. Prospectus

The correct answer is: Trade ticket

The document that records the details of a securities transaction at a broker-dealer is the trade ticket. This instrument captures essential information such as the type of security traded, the number of shares or units involved, the price at which the trade occurred, and the specific time of the transaction. It serves as an internal record for the broker-dealer, ensuring all transaction details are appropriately documented for both compliance purposes and to facilitate accurate reporting to clients. In contrast, a confirmation statement is a document sent to customers after the trade has been executed, summarizing the transaction that occurred. While it provides important information about the trade, it is not the primary record created at the point of transaction. A brokerage agreement outlines the terms and conditions of the relationship between a customer and the broker but does not detail individual trades. A prospectus is a formal document that provides details about an investment offering, usually for mutual funds or publicly traded securities; it does not document individual transactions at a broker-dealer.