Which One of the Following Guarantees That the Terms of an Exchange-Listed

question 37

Multiple Choice

Which one of the following guarantees that the terms of an exchange-listed option contract are fulfilled when an option is exercised?

• A)Securities and Exchange Commission
• B)Federal Reserve
• C)New York Options Exchange
• D)Options Clearing Corporation
• E)Securities Investors Protection Corporation

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Definitions:

Dividends

Dividends are payments made by a corporation to its shareholders, usually derived from the company's profits, as a way to distribute a portion of the earnings back to investors.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of earned income, often seen in international business or when corporate income is taxed both at the corporate and personal levels.

Preferred Stock

Preferred stock is a type of stock that provides dividends before any dividends are paid to common stockholders and typically does not confer voting rights, offering a blend of stock and bond features.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.