Which One of the Following Provides the Best Example of Securitization

question 40

Multiple Choice

Which one of the following provides the best example of securitization?

• A) convertible bond
• B) call option
• C) mortgage pass-through security
• D) preferred stock

---

Definitions:

Corporate Investor

An entity, typically a company, that invests its resources in other companies, either to gain strategic advantages or financial returns.

IFRS

International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to standardize financial reporting globally.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction, particularly in the United States.

Control

The power to influence or direct people's behavior or the course of events, especially in the context of corporate governance or management.