What Is a Correspondent Relationship Between Banks? What Services Are

question 14

Essay

What is a correspondent relationship between banks? What services are performed by correspondent banks?

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Definitions:

Convertible Preferred Stock

A type of preferred stock that grants the holder the option to convert the stock into a set number of shares of common stock, usually at any time after a predetermined date.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Par Value

The face value of a bond or stock as stated by the issuing company, unrelated to its market value.

Transaction Fee

A charge levied for processing a payment or financial transaction.