Which One of the Following Statements About Stockbrokers Is Correct

question 9

Multiple Choice

Which one of the following statements about stockbrokers is correct?

• A) Stockbrokers act as dealers in the securities they trade.
• B) Stockbrokers must be licensed by the Securities and Exchange Commission.
• C) Stockbrokers are regulated by financial consultants.
• D) Stockbrokers execute trades on the floor of the New York Stock Exchange on behalf of account executives.

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Definitions:

Direct Materials

Materials that can be directly linked to the creation of a product and represent a large part of the cost of production.

Direct Labor

The labor cost of workers who are directly involved in the production of goods or the provision of services.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct labor and direct materials.

Direct Labor

The labor cost directly attributed to the production of goods or services, typically wages paid to those on the manufacturing floor.