The person on the other side of a transaction is referred to as the
A) derivator.
B) counterparty.
C) hedger.
D) speculator.

Question

Quizplus · Accepted Answer

The term "counterparty" refers to the other person or institution involved in a financial transaction. This can be another investor, a broker, or a financial institution. The counterparty is essentially the other side of the trade, and their actions and decisions will impact the outcome of the transaction. Choices A, C, and D are not accurate descriptions of the other party in a transaction.

The Person on the Other Side of a Transaction Is