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Basic Question 12 of 15
Which statements are true?
II. Dark pools lack transparency.
III. Securitization is similar to a sale of a profitable business ("spinning off") into a separate entity.
I. ECNs increase competition and lower transaction costs.
II. Dark pools lack transparency.
III. Securitization is similar to a sale of a profitable business ("spinning off") into a separate entity.
User Contributed Comments 3
| User | Comment |
|---|---|
| johntan1979 | Don't understand how securitization is the same as selling a profitable business... |
| jonan203 | if you own 10 business each producing $100,000, you can securitize them and raise, say 7 times earnings. you get $700,000 less any fees and no longer own the income. replace the word business with, mortgages, student loans, auto loans, etc. |
| khalifa92 | plus securitization of the pooled assets provides more liquidity and investors are willing to pay more for more liquid assets. |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe types of financial intermediaries and services that they provide
CFA® 2025 Level I Curriculum, Volume 3, Module 1.