When a Business Has Its Own Programmers to Write Application

question 24

True/False

When a business has its own programmers to write application software, the software is called custom application software.

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Definitions:

CDOs

Collateralized Debt Obligations, a type of structured asset-backed security (ABS) with different tranches that can be impacted by mortgage, auto loan, and credit card debt defaults.

Rating Agencies

Companies that assess the financial strength of entities, like corporations and governmental bodies, and their ability to meet financial obligations, issuing ratings that reflect that assessment.

Valuation

A systematic process to determine the price at which a security should sell in financial markets.

Designated Market Maker

A designated market maker is a market participant responsible for maintaining liquidity in a financial market by buying and selling securities.