Question

Short-term margin lending and the provision of stock research services are services that constitute which activity?:

Group of answer choices

M&A Advising

Underwriting

Reinsurance

Prime Brokerage

Market making

Answer 1

Meaning to Understood : Margin lending, whether its short term or long term, describes the provision of financing backed by a portfolio of cash, shares, units in managed funds, commodities, derivatives and any other form of market traded asset which is extended to individual or corporate borrowers for the purposes of financing investments.

Features : A key feature of margin lending is that the ability to borrow funds is determined by the assets in the portfolio, their loanable value and a credit limit based on the borrower's financial position.

By Whom :Margin loans can be made by lenders to individual borrowers, limited partnerships, private and public companies, limited liability partnerships and other incorporated associations.

My Answer Of Choice Based On Above Analysis : Prime Brokerage*

*(Defination Of Prime Brokerage : A Prime Brokerage is a packaged collection of assets provided to hedge funds and other major investments investors by investment banks and other Financial institutes who need to be able to borrow securities or cash to participate in netting to generate absolute returns.
The services offered under prime brokerage include
- securities lending,
- leverage trade executions,
- cash managements, and
- other things too.)