A registered representative receives a telephone call from a customer who tells the representative to: "Sell my 500 shares of ABC stock at the market." The representative has the record of the customer purchasing the shares 2 years ago, but the shares were transferred into the customer's name and shipped to the customer at his home address. The representative asks the customer where the shares are and the customer responds as follows: "The shares are in a fireproof safe in my bedroom." The representative should:

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7 August, 19:44

A registered representative receives a telephone call from a customer who tells the representative to: "Sell my 500 shares of ABC stock at the market." The representative has the record of the customer purchasing the shares 2 years ago, but the shares were transferred into the customer's name and shipped to the customer at his home address. The representative asks the customer where the shares are and the customer responds as follows: "The shares are in a fireproof safe in my bedroom." The representative should:

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Asia Casey · Answer 1

The registered representative should accept the client's sell order, but must mark the order ticket as a long term. The representative can accept the order because it is reasonable that the client will be able to deliver the shares by the time of the settlement. If the representative marked the order ticket as a short sale, it is probable that the client will not be able to deliver the shares on time.