Final answer:
The term for a firm that fully discloses receipt of customer securities is a Fully Disclosed Firm. This firm type is associated with activities like IPOs and stock offerings, which provide capital for growth and investor repayment.
Step-by-step explanation:
The term used to describe a firm that fully discloses that it receives customer securities is a Fully Disclosed Firm. When a firm engages in an initial public offering (IPO), it sells its stock to the public, including individuals and institutional investors like mutual funds, insurance companies, and pension funds.
This IPO and any subsequent stock sales provide capital for the company, enabling it to expand operations and repay early investors like angel investors and venture capital firms. Decisions about issuing stock, paying dividends, or reinvesting profits are made by the firm, which can be either private or public.