Concept:Risk spreading means collecting small premiums from many people to cover the large losses of a few.
Explanation:An insurance company specializes in risk spreading because it accepts premiums from many individuals and businesses.
It uses those pooled funds to pay compensation when a policyholder suffers a loss such as fire, theft, accident, or death.
In this way, the financial burden of any single loss is shared by all the insured persons.
This process is called risk pooling or risk spreading.
Investment banks mainly help firms raise capital and advise on financial transactions.
Development banks provide long-term finance for development projects.
The stock exchange is a market where shares and securities are bought and sold.
None of these specialise in spreading risk like an insurance company does.
Answer:C. an insurance company