How Does Public Key Encryption Work

question 33

Essay

How does public key encryption work?

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Definitions:

Over-the-counter Market

A decentralized market without a central physical location, where market participants trade stocks, commodities, currencies, and other financial instruments directly between two parties without a broker's intermediation.

Auction Market

A public market where buyers and sellers participate in the bidding of prices for assets.

Term to Maturity

The remaining time until a debt security, such as a bond, reaches its repayment date at which point the principal is repaid to investors.

Coupon

In finance, a coupon refers to the interest payment received by a bondholder from the bond's issuer at specified intervals.