Demat account
Securities Exchange Commission
Depository Trust Company
Federal Depository Insurance Corporation.
Answer is Right!
Answer is Wrong!
The correct answer is: C. Depository Trust Company (DTC).
The DTC is a private corporation that holds securities in electronic form for its participants, which include broker-dealers, banks, and other financial institutions. The DTC eliminates the need for physical stock certificates by keeping track of all shares electronically. This makes it easier to trade stocks and reduces the risk of fraud.
The other options are incorrect because:
- A. Demat account is an account that holds shares in electronic form. It is not a company or organization that eliminates the use of stock certificates.
- B. Securities Exchange Commission (SEC) is a government agency that regulates the securities industry. It does not eliminate the use of stock certificates.
- D. Federal Depository Insurance Corporation (FDIC) is a government agency that insures bank deposits. It does not eliminate the use of stock certificates.