Once a Prime-Broker Has Matched and Accepted a Trade, Separate

question 563

Multiple Choice

Once a prime-broker has matched and accepted a trade, separate confirmations must be exchanged between:

• A) the prime-broker and the executing dealer only
• B) the prime-broker and the executing dealer, and between the executing dealer and the client
• C) the prime-broker and the executing dealer, and between the prime-broker and the client
• D) the prime-broker and the client, and between the executing dealer and the client

---

Definitions:

Margin Of Safety

The difference between actual sales and break-even sales, providing a cushion against which performance can decline before a business incurs a loss.

Contribution Margin

Contribution Margin is the amount by which sales revenue exceeds variable costs of production, indicating how much revenue contributes to fixed costs and profit.

Break-even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss.

Variable Cost

Variable costs vary directly with the level of production output and can include expenses like raw materials and labor directly involved in a product's manufacturing.