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Coke is planning on marketing a new drink called Very Berry Coke which is a mixture of raspberry and blackberry flavors blended to perfection and added to the highly secret Coca-Cola formula. This new product is expected to reduce the sales of their existing product, Cherry Coke, by $10 million per year. This is an example of a
Designated Market Maker
A designated market maker is a market participant responsible for maintaining liquidity in a financial market by buying and selling securities.
Securities
Assets indicating equity in a publicly-traded company, a bond signifying indebtedness to a company or government, or options granting ownership rights.
Collateralized Debt Obligations
Collateralized debt obligations (CDOs) are complex financial instruments that pool together cash flow-generating assets and repackages this asset pool into discrete tranches that can be sold to investors.
Default Risk
The potential that a borrower will fail to meet the obligations of a loan or debt agreement.
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