Question

Select the correct answer.

Which financial item transfers risk from one party to another?

equities or stocks

apartments

initial public offerings (IPOS)

stock futures

Submit

Answer 1

STOCK FUTURES

Explanation:

i just got it right on my test

Answer 2

Equities or stocks.

Explanation:

Equities or stocks are the source of finance for a company. A company issues stocks and then the fund received from these stocks is used to run the business operations. Risk transfer is a way to minimize the self risk and transfer it to other person. When stocks are sold the risk is transferred to other person who buys the stocks.