Issuers of Securities

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Questions and Answers

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?

  • Private companies
  • Nonprofit organizations
  • Individual investors
  • Local governments (correct)

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?

<p>Raising capital beyond deposits and grants (C)</p> Signup and view all the answers

Which type of organizations issue securities as part of the disinvestment program?

<p>Government agencies (D)</p> Signup and view all the answers

What is a common reason for local governments to issue debt securities?

<p>To meet development needs (A)</p> Signup and view all the answers

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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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