Question

The monitoring of securities is a back-office function in a broker-dealer firm. Monitoring securities includes a number of functions, including maintenance of securities in custody and acting as a liaison between issuing organizations and customers with securities in street name. The department typically responsible for monitoring securities is:

a. Stock Record Department
b. Dividend Department
c. Proxy Department
d. All of the above.

Answer 1

The departments responsible for monitoring securities in a broker-dealer firm include the Stock Record, Dividend, and Proxy Departments, all of which perform functions related to the custody and management of securities.

Step-by-step explanation:

The monitoring of securities is an essential back-office function in a broker-dealer firm. Among the departments typically responsible for this function are the Stock Record Department, Dividend Department, and Proxy Department. The Stock Record Department maintains custody of securities and ensures accurate records are kept. The Dividend Department is involved in the processing and distribution of dividends to shareholders. The Proxy Department acts as a liaison between issuing organizations and clients, particularly for those holding securities in street name, which refers to securities held by a broker on behalf of clients but registered in the name of the brokerage firm. Collectively, these departments ensure that securities monitoring is done efficiently and effectively, acting in the best interests of both the firm and its clients.