Settlement
Which organization holds securities in electronic book-entry form and facilitates transfers between broker-dealers?
The Depository Trust Company (DTC) holds securities in electronic book-entry form, eliminating the need for physical certificates. NSCC (National Securities Clearing Corporation) handles clearing and netting. Both are su
Complete Analysis & Legal Rationale
The Depository Trust Company (DTC) holds securities in electronic book-entry form, eliminating the need for physical certificates. NSCC (National Securities Clearing Corporation) handles clearing and netting. Both are subsidiaries of DTCC.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.