Most brokerage firms will invest surplus cash, dividends and interest received, proceeds from the sale of stock and the like in

Question

Quizplus · Accepted Answer

A money market mutual fund is a common choice for brokerage firms to invest surplus cash, dividends, interest, and sale proceeds because it is a low-risk investment with relatively high liquidity and a competitive yield compared to other cash alternatives. Certificates of deposit and non-interest bearing accounts offer low yields, while investing in additional securities of the same type can increase exposure to risk and reduce liquidity.

Most Brokerage Firms Will Invest Surplus Cash, Dividends and Interest