Which of the following is true regarding an uncertificated security?
A) A registered security is a type of an uncertificated security.
B) Its ownership is recorded only on the books of the issuer.
C) It is dealt in on securities exchanges.
D) Most developed countries prevent companies from using uncertificated certificates.

Question

Quizplus · Accepted Answer

An uncertificated security is not represented by a physical certificate and its ownership is recorded only on the books of the issuer. A registered security is a type of certificated security. While uncertificated securities can be traded, they may not be dealt in on securities exchanges. While some countries may limit or regulate the use of uncertificated securities, they are commonly used in many developed countries.

Which of the Following Is True Regarding an Uncertificated Security