The type of institutions that write securities, engage in brokerage and security trading are considered as _____________?
Correct answer: C. investment banks
- A. trading institutions
- B. activity institutions
- C. investment banks
- D. mortgage banks
Explanation
Investment banks underwrite securities, arrange their issuance, and may provide brokerage and trading services. Mortgage banks mainly specialize in mortgage lending rather than the full range of securities activities.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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