A bridge loan provided by a securities firm would most likely be made to
A)an acquirer that needs temporary financing to complete a merger.
B)a commercial bank in the federal funds market.
C)a mutual fund that needs to cover share redemptions.
D)an institutional investor that has received a margin call and needs to add cash to its margin account.

Question

Quizplus · Accepted Answer

Bridge loans are short-term loans provided to acquirers to cover temporary financing needs, such as completing a merger or acquisition, until they can secure more permanent financing.

A Bridge Loan Provided by a Securities Firm Would Most