When a Third Party Says, "I'll See That You Get

question 92

Multiple Choice

When a third party says, "I'll see that you get paid," there is an assumption of a primary obligation, and the promise is a(n)

• A) indemnity.
• B) guarantee.
• C) contract.
• D) obligation.
• E) interest.

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Definitions:

Short Sale

This is a trading or investment strategy where an investor sells a security they do not own, expecting its price to decline.

Margin Required

The minimum amount of funds that must be deposited with a broker when borrowing to buy securities or entering into a futures contract, serving as collateral.

Over-the-counter

A decentralized market, without a central physical location, where participants trade stocks, commodities, currencies, or other instruments directly between two parties and not through a central exchange.

Securities Market

The Securities Market is a marketplace where financial instruments like stocks, bonds, and derivatives are issued and traded, facilitating capital flow and investment.