Asked by
Crystal Merenda
on Dec 02, 2024Verified
The original sale of a bond by the issuing company is a primary market transaction, a secondary market transaction is:
A) a subsequent bond issue from the same company.
B) subsequent trading among investors of the original bond.
C) Both of the above
D) None of the above
Primary Market Transaction
Deals with the issuance of new securities directly from the issuer to investors.
Secondary Market Transaction
The buying and selling of previously issued securities, such as stocks and bonds, between investors, rather than directly from issuing companies.
Bond Issue
The process of issuing new bonds by a corporation or government to raise capital, involving the creation of new debt securities to be sold to investors.
- Determine the influences on the market value and income from bonds before they reach maturity.
Verified Answer
NH
Learning Objectives
- Determine the influences on the market value and income from bonds before they reach maturity.