Securitization is the process of __________. a. reducing risk by decreasing corporate debt loads. b. converting loans into securities. c. issuing bonds to finance purchases of equipment and structures. d. issuing stocks to finance capital spending.

Respuesta :

Answer:

The answer is B. converting loans into securities

Explanation:

Securitization is a process of buying assets, placing them in a pool and the selling securities that represent ownership of the pool or a process of buying bonds that can be converted into a predetermined amount of a company's common stock. Example is a convertible debt. Convertible debt will be converted to equity if some conditions are met. Conditions like a high share price of the company in question.

ACCESS MORE