Which of the Following Refers to the Purchase of Securities

question 10

Multiple Choice

Which of the following refers to the purchase of securities in one market for immediate resale in another to profit from a price discrepancy?

• A)Exercise
• B)Straddle
• C)Arbitrage
• D)Swap

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Definitions:

Letter Contracts

Preliminary written agreements outlining the terms between parties for goods or services, used before final contracts are signed.

Government

The governing body of a nation, state, or community which exercises authority and performs functions for the public welfare.

Pay-for-success Contracts

Agreements where governments or other commissioners agree to pay for social services only if measurable outcomes are achieved, shifting financial risk to investors.

Nonprofit Organization

A nonprofit organization is a type of entity that operates for charitable, educational, cultural, religious, or public service purposes, rather than for profit, and reinvests surplus revenues into the organization's mission.