Securitization is defined as:
A) bolstering defense spending.
B) making it more difficult to enter the United States illegally.
C) creating incentives for firms to protect proprietary information.
D) disallowing the use of collateral for loans.
E) lumping large numbers of financial instruments together and selling pieces to different types of investors.

Question

Quizplus · Accepted Answer

Securitization refers to the process of bundling assets or debts into a pool and then issuing securities backed by that pool. These securities are then sold to investors, often in the form of bonds. This allows the original lenders or asset owners to raise funds more easily and diversify their risk, while providing investors with a range of investment options.

Securitization Is Defined As