Lauren Mitchell Has a Margin Account with a Local Brokerage

question 70

Multiple Choice

Lauren Mitchell has a margin account with a local brokerage firm, RL Brokers. She recently purchased 200 shares of Abbot Industries common stock that trades on the New York Stock Exchange (NYSE) . These shares are held in street name and are registered under the name of:

• A)Lauren Mitchell.
• B)RL Brokers.
• C)Abbot Industries.
• D)the New York Stock Exchange.
• E)the Securities and Exchange Commission.

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Definitions:

Proceeds

Something that is exchanged for a debtor’s sold collateral.

Secured Party

A lender or creditor who has an interest in the collateral securing a loan or credit agreement.

UCC

Short for Uniform Commercial Code, it is a comprehensive set of laws governing all commercial transactions in the United States.

Collateral

Collateral refers to properties or assets that a borrower offers to a lender as security for a loan or credit, and that can be taken by the lender if the borrower fails to pay back the loan.