What does dtc mean as relates to stock? as relates to a brokerage account?
Question:
Answer:
Imagine a big room with lots of buckets holding stock certificates. The buckets are grouped by investment company. When you call your broker to buy shares, the people in this room wait for your money to arrive then they find the stock certificate for the shares you are buying in the bucket assigned to the seller and put it in your bucket. They then give the money to the seller. Now imagine a big computer that does this electronically with virtual shares. That is what DTC does.
The Depository Trust Company
basically they make sure that the trades settle
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