When dealing with a fund manager, who will allocate shares in a transaction to his unknown clients after the transaction has been executed with you, you should:
A) Agree in writing with the fund manager that the allocation will be confirmed as soon as practicable after the transaction is executed.
B) Insist on the allocation being made and confirmed before the transaction is executed.
C) Agree in writing with the fund manager that he will guarantee the transaction until the allocation is confirmed.
D) Any of the above.

Question

Quizplus · Accepted Answer

While insisting on the allocation being made and confirmed before the transaction is executed would be preferred, it may not always be possible or practical in dealing with a fund manager who has unknown clients. Therefore, agreeing in writing with the fund manager that the allocation will be confirmed as soon as practicable after the transaction is executed provides a degree of assurance and transparency in the process. However, it is not necessary to request a guarantee of the transaction.

When Dealing with a Fund Manager, Who Will Allocate Shares