Why Have Some Argued That Securitization Has Increased Risk Across

question 14

Essay

Why have some argued that securitization has increased risk across the whole economy, increasing the severity of the recession in 2009?

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Definitions:

Public Corporations

Companies that have issued securities through an initial public offering (IPO) and are traded on at least one stock exchange or in over-the-counter markets.

Domestic Corporations

Companies that are registered and operate within the legal boundaries of a country, subject to its governance and taxation.

Nonstock Companies

Companies that do not issue stock as part of their ownership structure; often structured as cooperatives or mutual companies.

Par Preferred Stock

Preferred shares of a corporation with a nominal face value, which typically dictates dividends and liquidation claims.