A Private Agreement to Buy or Sell a Given Quantity

question 75

Multiple Choice

A private agreement to buy or sell a given quantity of an asset such as a currency, interest rate or commodity at a specified future date at a specified price is called:

• A) Forward investment plan
• B) Future agreement plan
• C) Future Contract
• D) Forward Contract

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Definitions:

Non-Public Firms

Companies that do not have their stock traded on public stock exchanges and are typically privately owned.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, making them partial owners of the company.

Takeover

The acquisition of control over another company, either through purchasing a majority stake of shares or by other means.

Leveraged Buyout

An acquisition of a company using a significant amount of borrowed money to meet the cost of acquisition.