Blanket Bond

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DEFINITION of 'Blanket Bond'

Insurance coverage carried by brokerages, investment bankers, and other financial institutions to protect them against losses due to employee dishonesty.

INVESTOPEDIA EXPLAINS 'Blanket Bond'

Examples of things that a blanket bond might cover are forged checks, counterfeit currency, fraudulent trading, and property damage.

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    Adverse selection causes market failure -- a sub-optimal level of beneficial trades -- whenever material information cannot ... Read Full Answer >>
  3. How does adverse selection affect insurance premiums?

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  4. How does adverse selection contribute to market failure?

    Adverse selection is perhaps the most academically cited example of market failure in a laissez-faire economy. The problem ... Read Full Answer >>
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