Question

A customer's confirmation of a municipal securities transaction must include A) the highest potential yield the customer may receive and the amount of markup or markdown in a principal transaction. B) the lowest potential yield the customer may receive and information regarding the catastrophic call provision. C) the highest potential yield the customer may receive and information regarding the catastrophic call provision. D) the lowest potential yield the customer may receive and whether the bond is taxable or subject to the alternative minimum tax.

Answer 1

D) the lowest potential yield the customer may receive and whether the bond is taxable or subject to the alternative minimum tax.

Step-by-step explanation:

All municipal securities are exempted from registration and filing requirements of the Securities and Exchange Commission (SEC).

However, a customer's confirmation of a municipal securities transaction must include the lowest potential yield the customer may receive and whether the bond is taxable or subject to the alternative minimum tax.