A Market's Clearinghouse

question 91

Multiple Choice

A market's clearinghouse:

• A)issues certificates representing securities to investors
• B)keeps an electronic record of securities and their owners
• C)is only involved in primary market trades
• D)provides an expert opinion about the expected performance of securities.
• E)All of these.

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), representing the profit from a company’s ordinary, core business operations.

Contribution Format

An income statement layout that separates fixed and variable costs, allowing for the calculation of contribution margin and easier analysis of profitability.

Operating Income

A financial metric that shows how much of a company's revenue is left over after paying for variable costs of production like wages and raw materials.

Contribution Format

A method of income statement presentation that separates fixed costs from variable costs to show the contribution margin.