6 Questions
What is the main reason issuers issue securities?
To meet obligations to investors
Which organization may issue debt securities to finance their deficits?
Local governments
Who needs authorization from regulatory authorities to issue securities?
All issuers
What do financial institutions and banks issue securities for?
Raising capital beyond deposits and grants
Which type of organizations issue securities as part of the disinvestment program?
Government agencies
What is a common reason for local governments to issue debt securities?
To meet development needs
Study Notes
Issuance of Securities
- The main reason issuers issue securities is to raise capital.
Debt Securities
- Governments may issue debt securities to finance their deficits.
Authorization to Issue Securities
- Issuers need authorization from regulatory authorities to issue securities.
Financial Institutions and Banks
- Financial institutions and banks issue securities to raise capital, manage risk, and generate revenue.
Disinvestment Program
- Public sector organizations issue securities as part of the disinvestment program.
Local Governments
- A common reason for local governments to issue debt securities is to finance their infrastructure projects and public expenditures.
Learn about organizations that raise money by issuing securities based on their need for capital, ability to meet obligations, and cost considerations. Discover common issuers in the securities markets such as companies and governments.
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