Securitization is the process of
A) issuing stocks to finance capital spending.
B) issuing bonds to finance purchases of equipment and structures.
C) reducing risk by decreasing corporate debt loads.
D) converting loans into securities.

Question

Quizplus · Accepted Answer

Securitization involves pooling together loans or other assets and then converting them into securities that can be sold to investors. This process can provide cash for lenders while spreading risk across a larger number of investors.

Securitization Is the Process of