ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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provides portfolio services
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offers a security-such as a stock or bond-for sale to the public
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an institution authorized to pay the principal plus premium
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entity that interposes itself as the buyer to every selling brokerage firm
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Detailed explanation-1: -The entity that creates the securities for sale is known as the issuer, and those who buy them are, of course, investors. Generally, securities represent an investment and a means by which municipalities, companies, and other commercial enterprises can raise new capital.
Detailed explanation-2: -An issuer is a legal entity that develops, registers and sells securities to finance its operations. Issuers may be corporations, investment trusts, or domestic or foreign governments. Issuers make available securities such as equity shares, bonds, and warrants.
Detailed explanation-3: -Name of Issuer means the legal entity of the company providing the insurance, bond or guarantee, etc. Enter “self” if the owner or operator is providing a Financial Test or is using a Fund. If using a Guarantee, use the Guarantor’s name.
Detailed explanation-4: -In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
Detailed explanation-5: -New securities are issued (created) and sold to investors for the first time in the primary market. Thereafter, investors trade these securities on the secondary market. The primary market is also known as the new issues market.