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Basic Question 12 of 15
Which statements are true?
II. Dark pools lack transparency.
III. Securitization is similar to a sale of a profitable business ("spinning off") into a separate entity.
I. ECNs increase competition and lower transaction costs.
II. Dark pools lack transparency.
III. Securitization is similar to a sale of a profitable business ("spinning off") into a separate entity.
User Contributed Comments 3
| User | Comment |
|---|---|
| johntan1979 | Don't understand how securitization is the same as selling a profitable business... |
| jonan203 | if you own 10 business each producing $100,000, you can securitize them and raise, say 7 times earnings. you get $700,000 less any fees and no longer own the income. replace the word business with, mortgages, student loans, auto loans, etc. |
| khalifa92 | plus securitization of the pooled assets provides more liquidity and investors are willing to pay more for more liquid assets. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe types of financial intermediaries and services that they provide
CFA® 2024 Level I Curriculum, Volume 3, Module 1.