Staci Owns 1,000 Shares of Stock in a Margin Account

question 25

Multiple Choice

Staci owns 1,000 shares of stock in a margin account. Those shares are most likely held in:

• A)transit.
• B)her registered name.
• C)street name.
• D)a wrap account.
• E)a discretionary account.

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Definitions:

Depreciation

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders, used for reinvestment or debt payment.

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Expense Matching

An accounting principle that states expenses should be recorded in the same period as the revenues they helped to generate, to accurately match income with expenses.