Get comprehensive answers to your questions with the help of IDNLearn.com's community. Our platform is designed to provide quick and accurate answers to any questions you may have.

Select the correct answer.

Which financial item transfers risk from one party to another?

A. Equities or stocks
B. Apartments
C. Initial public offerings (IPOs)
D. Stock futures


Sagot :

Final answer:

Stock futures transfer risk from one party to another by creating a contract to buy a stock at a specified price on a future date.


Explanation:

Stock futures are the financial item that transfers risk from one party to another. Stock futures are contracts that obligate the buyer to purchase a specific quantity of a stock at a specified price on a future date. This helps in transferring the risk associated with price fluctuations of the stock.


Learn more about Stock futures here:

https://brainly.com/question/36176908