The NYSE Is an Example of A(n)

question 141

Multiple Choice

The NYSE is an example of a(n)

• A) Initial public offering.
• B) Investment bank.
• C) Primary market.
• D) Secondary market.
• E) Securities exchange.

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Definitions:

Guaranteed Line

A credit line that is assured to be available to the borrower by the lender, typically used to ensure liquidity for businesses.

Compensating Balances

Minimum cash balances that a business agrees to maintain in its account as part of a loan agreement, often used to reduce the lender's risk.

Pledging Agreement

An agreement where a borrower pledges an asset as collateral to secure a loan, ensuring the lender can seize the asset if the loan defaults.

Warehousing

In finance, a method of securing the lender’s interest when borrowing is secured by inventories. The inventory is placed in a warehouse operated by a third party. When it is drawn out of the warehouse by the borrower, a pro rata share of payment on the loan is due.