Trading, Accounts & Prohibited ActsQuestion 193 of 398
Which entity serves as the central securities depository that holds securities in electronic (book-entry) form and facilitates their transfer between members?
a.The Financial Industry Regulatory Authority (FINRA)
b.The Options Clearing Corporation (OCC)
c.The Depository Trust Company (DTC)
d.The Securities Investor Protection Corporation (SIPC)
Explanation
The DTC, a subsidiary of the DTCC, immobilizes securities in book-entry form and enables ownership to be transferred by electronic bookkeeping rather than physical certificate delivery. The OCC clears options, and SIPC provides limited customer account protection.
Law Reference: Securities Exchange Act of 1934Practice all 398 questions free — no signup required.
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