Securities Chapter 1

True or False: Both stocks and bonds represent ownership in a corporation.

• True

• False. Bonds are debt instruments, while stock represent ownership interest in a corporation.

True or False: A hedge fun is an example of a client that may benefit from a prime-brokerage arrangement.

• TRUE

• FALSE

An RR's employer is referred to as a

(a)  

In an (a)   arrangement , a clearing firm doesn't have information on each individual customer of an introducing firm.

A ___________ ____________ is a type of advisor that provides advice either to a state, county , or city.

(a)  

A __________ is any person that executes __________ transactions in securities for the account of others.

(a)  

A BD that does not hold a customer's cash or securities is known as a (a)   .

True or False: A hedge fund is an example of a client that may benefit from a prime-brokerage arrangement.

• TRUE

• FALSE

In a ___________ ____________ account, information about each customer of the introducing firm is sent to the clearing firm.

(a)  

True or False: Unlike equities, bonds do not have organized exchanges.

• True. Unlike equity securities, corporate, municipal, and U.S. government bonds don't have organized exchanges.

• False