A corporation sells securities to an investment banking firm on January 1st. The next day an
international oil crisis causes stock prices to drop dramatically.
The corporation is immune from
the drop in price of its stock due to which function of the investment banking firm?
A) reinsurance B) underwriting C) hedging D) distributing
B
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People generally send only one message at a time
Indicate whether this statement is true or false.
Roger Ray runs a motel in a rented property and sublets a part of its garage to the owner of a nearby fuel station. Three months later, the motel catches fire from a fuel leak in the garage and Roger suffers severe damages
If Roger owns a standard fire insurance policy for years, the insurer can use the ________ to refuse covering the damage caused by the fire. A) deductible clause B) exclusions from coverage clause C) incontestability clause D) copay clause