Comments That Do Not Belong in the Report but May

question 40

Multiple Choice

Comments that do not belong in the report but may interest the reader should be placed in the ________.

• A) transmittal letter
• B) disclaimer
• C) appendix
• D) acknowledgements

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Definitions:

Asset Securitization

The process of pooling and repackaging of homogenous illiquid financial assets into securities that can be sold to investors.

Credit Enhancements

Strategies or financial products used to improve the credit worthiness of a financial transaction, reducing the risk for investors.

Warrants

Call options issued by a company allowing the holder to buy a stated number of shares of stock from a company at a specified price. Warrants are generally distributed with debt, or preferred stock, to induce investors to buy those securities at a lower cost.

Option

A contract that gives its holder the right to buy or sell an asset at some predetermined price within a specified period of time.