Asked by Caleb Farris on Jul 25, 2024
Verified
When stocks are held in street name,
A) the investor receives a stock certificate with the owner's street address.
B) the investor receives a stock certificate without the owner's street address.
C) the investor does not receive a stock certificate.
D) the broker holds the stock in the brokerage firm's name on behalf of the client.
E) the investor does not receive a stock certificate, and the broker holds the stock in the brokerage firm's name on behalf of the client.
Street Name
Describes securities held by a broker on behalf of a client but registered in the name of the firm.
Stock Certificate
A physical document that represents ownership in a corporation, indicating the number of shares owned by the shareholder.
- Identify the role and significance of primary and secondary markets in securities transactions.
Verified Answer
CC
Caroline CapaprisAug 01, 2024
Final Answer :
E
Explanation :
When stocks are held in street name, the investor does not receive a physical stock certificate, and the broker holds the stocks in the brokerage firm's name on behalf of the client. This simplifies the trading process and ensures security.
Learning Objectives
- Identify the role and significance of primary and secondary markets in securities transactions.