SIE Knowledge of Capital Markets Practice Question 35

Correct Answer: C

Explanation:

C: Choice C is correct because a depository holds information that demonstrates investment ownership. Choice A is incorrect because a clearing corporation confirms investment transactions. Choice B is incorrect because a clearing firm settles purchases and sales of investments. Choice D is incorrect because a stock exchange is a venue where buy orders are matched with sales orders. The results of those matches are communicated to a depository, who processes the change in ownership.