Which of the Following Is True of a Securities Exchange

question 25

Multiple Choice

Which of the following is true of a securities exchange?

• A)The stocks are traded on a securities exchange using pink slips only.
• B)The traded securities change hands right there on the floor of the securities exchange.
• C)The buyer and the seller in a securities exchange underwrite shares with the investment banker.
• D)The securities exchange acts as a market maker where new securities are sold to the public.
• E)The securities exchange is a primary market for sale of securities on the over-the-counter bulletin board (OTCBB).

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Proprietorship

A business owned by a single individual who is responsible for its assets and liabilities.

Personal Assets

Items of value owned by an individual, including cash, real estate, investments, and personal property.

Accounting Records

Documentation and books involved in preparing financial statements, including ledgers, journals, and other evidence of transactions.