When an Investment Bank Commits Its Own Funds to Take

question 4

Multiple Choice

When an investment bank commits its own funds to take a risk position in an underlying security, it is known as:

• A) underwriting.
• B) market making.
• C) proprietary trading.
• D) organizing a market.
• E) brokering.

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Definitions:

Organization

Describes an arranged group of people and systems structured to meet a goal or a set of goals, often in a business or institutional context.

Personality Dimensions

Fundamental categories or aspects that describe and differentiate individual personalities, such as openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Stress

A physical or emotional response to external or internal pressures, often characterized by feelings of tension or anxiety.

Work Stress

A response to pressures or demands placed on individuals which is seen as beyond their knowledge and abilities to cope.