Series 27: Permitted Purpose

Taken from our Series 27 Online Guide

Permitted Purpose

Registered broker-dealers generally may borrow or lend securities only for these or similar purposes:

  • To deliver borrowed securities for short sales
  • To provide securities to cover fails to deliver

If the broker-dealer anticipates a short sale or fail transaction, borrowing may be made up to one standard settlement cycle (five day

Since you're reading about Series 27: Permitted Purpose, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 27
Please Enable Javascript
to view this content!