Which of the following deliveries for a 600 share order, broker-dealer to broker-dealer, would be good delivery according to the rules?
I. One certificate for 600 shares
II. Six certificates for 100 shares
III. Eight certificates for 75 shares
IV. Twelve certificates for 50 shares
a) I, II, IV
b) II, IV
c) I, II, III
d) I, II, III, IV
The correct answer is a)
Good delivery between broker-dealers means “round lots” of 100 shares, or units that can be made into round lots. Statements I and II are easy, but notice that statement IV works too: the certificates for 50 shares can be “stacked” to make 100 share stacks. Statement III doesn't work, because there is no way to stack certificates for 75 shares to make stacks of 100.


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