Which of the Following Is True Regarding an Uncertificated Security

question 55

Multiple Choice

Which of the following is true regarding an uncertificated security?

• A) A registered security is a type of an uncertificated security.
• B) Its ownership is recorded only on the books of the issuer.
• C) It is dealt in on securities exchanges.
• D) Most developed countries prevent companies from using uncertificated certificates.

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Definitions:

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments but are issued at a deep discount and redeemable for their face value at maturity.

Market Rate

The typical or prevailing interest rate available in the market for financial instruments or loans.

New Equipment

Assets purchased for business operations that haven't been used before, representing investment in operational efficiency or capacity expansion.

Quoted Price

The most recent price at which a security, commodity, or asset was traded.