SIE Understanding Trading, Customer Accounts and Prohibited Activities Question 50: Answer and Explanation

Question: 50

Which of the following is the oldest method of ownership settlement?

• A. Book entry settlement
• B. Stock certificate delivery settlement
• C. Electronic settlement
• D. Paperless settlement

Correct Answer: B

Explanation:

B: Choice B is correct because paper stock certificates were printed and needed to be delivered. Choices A, C, and D are incorrect because they refer to the current method of transferring ownership at settlement.