SIE Exam Practice Question 786

Question: 786

When an investment company puts home mortgages or other loans into a pool and then sells securities representing shares of the pool, the securities sold are referred to as which of the following?

Correct Answer: A

Explanation:

When an investment company puts home mortgages or other loans into a pool and then sells securities representing shares of the pool, the securities sold are referred to as asset-backed securities.

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