Funds received from a bridge loan are commonly used to
A)purchase junk bonds.
B)purchase high-grade corporate bonds.
C)provide temporary financing for an acquisition.
D)provide financing for individual investors that wish to purchase Treasury bonds.

Question

Quizplus · Accepted Answer

Bridge loans are short-term loans used to provide temporary financing until a more permanent source of funding is secured. One common use of bridge loans is to provide funding for an acquisition, such as when a company needs to quickly close on a deal but is still waiting for long-term financing to come through.

Funds Received from a Bridge Loan Are Commonly Used to