Which One of the Following Statements Concerning Stock Trades Is

question 97

Multiple Choice

Which one of the following statements concerning stock trades is correct?

• A) Brokerage firms send customer orders to a market maker on the floor of the NYSE.
• B) Confirmation of a trade is transmitted directly from the NYSE to the customer who placed the order.
• C) A broker transmits OTC orders from a customer directly to a floor broker in the OTC market.
• D) Brokerage firms generally hold securities in street name so they can be transferred without the customer's signature.

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Definitions:

Retained Earnings

Part of shareholders' equity on a company's balance sheet, representing the amount of net income left over for the business after it has paid out dividends to its shareholders.

Control Account

An account used in the general ledger to summarize the balances of subsidiary accounts and facilitate the verification of financial information accuracy.

Customer Account Balances

The amounts owed to a company by its customers for goods or services delivered on credit.

Adjusting Entries

Entries made in the accounting records to realign the balances of accounts before financial statements are prepared.