SIE - Securities Industry Essentials Exam

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A Clearing Firm is

The company that acts as an agent or principal in a securities transaction and charges commissions or markups.
A
The company that changes the name on a stock certificate for transactions and records it on the official master shareholder listing.
B
The company that handles orders to buy and sell securities and maintains custody of securities and other assets.
C
The company that quotes both a buy and a sell price in a security held in inventory, hoping to make a profit on the bid-offer spread.
D

Explanations

( C ) is the Clearing Firm. ( A ) is a broker-dealer. ( B ) is a transfer agent. ( D ) is a market maker.

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