Podcast
Questions and Answers
What is the main reason issuers issue securities?
What is the main reason issuers issue securities?
- To meet obligations to investors (correct)
- To acquire funds for personal use
- To comply with regulatory authorities
- To avoid raising capital
Which organization may issue debt securities to finance their deficits?
Which organization may issue debt securities to finance their deficits?
- Private companies
- Nonprofit organizations
- Individual investors
- Local governments (correct)
Who needs authorization from regulatory authorities to issue securities?
Who needs authorization from regulatory authorities to issue securities?
- Local governments and municipalities only
- Financial institutions and banks only
- Government agencies only
- All issuers (correct)
What do financial institutions and banks issue securities for?
What do financial institutions and banks issue securities for?
Which type of organizations issue securities as part of the disinvestment program?
Which type of organizations issue securities as part of the disinvestment program?
What is a common reason for local governments to issue debt securities?
What is a common reason for local governments to issue debt securities?
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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.
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