When a Securities Firm Acts as a Broker, It

question 6

Multiple Choice

When a securities firm acts as a broker, it

• A)guarantees the issuer a specific price for newly issued securities.
• B)makes a market in specific securities by adjusting its own inventory.
• C)executes securities transactions between two parties.
• D)purchases securities for its own account.

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Definitions:

Business Segment

A distinct part of a company that can be identified by the products or services it provides or by the geographic markets it operates in, often reported separately in financial statements.

Segment Analysis

The practice of analyzing different business segments or units within a company to assess their performance or profitability.

Purchases Journal

A record keeping document where a business records all purchases of merchandise for resale.

Subsidiary Ledger

A detailed ledger containing the details of transactions for a specific account, supplementing the general ledger by providing individual entries.