What is an escrow?

[Christine]

Business English Lesson, Advanced Level

ESL/EFL Test #417 "Asset Ownership", question 1

......... receipt is issued by an approved depository to a clearing corporation on behalf of an investor evidencing ownership of the underlying call, interest, stock or bond; upon assignment, the depository agrees to deliver the underlying property to the clearing corporation against the aggregate assignment value.

(a) A credit
(b) An escrow
(c) A retainer
(d) A trustee

Business English Lesson, Advanced Level

ESL/EFL Test #417 "Asset Ownership", answer 1

An escrow receipt is issued by an approved depository to a clearing corporation on behalf of an investor evidencing ownership of the underlying call, interest, stock or bond; upon assignment, the depository agrees to deliver the underlying property to the clearing corporation against the aggregate assignment value.

Correct answer: (b) An escrow
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What is an escrow?

Christine

[Mister Micawber]

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Haven't you a DICTIONARY, Christine?
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Native English teacher at Mister Micawber's