SIE - Chapter 1 Questions and Answers Already Passed
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SIE - Chapter 1
Institution
SIE - Chapter 1
SIE - Chapter 1 Questions and Answers
Already Passed
What does the term issuer refer to in finance?
An issuer is a legal entity that offers securities to obtain funds for its operations.
Who can be considered an issuer?
Examples include the U.S. Treasury, various federal government...
1 SIE - Chapter 1 Questions and Answers Already Passed What does the term issuer refer to in finance? ✔✔ An issuer is a legal entity that offers securities to obtain funds for its operations. Who can be considered an issuer? ✔✔ Examples include t he U.S. Treasury, various federal government bodies, foreign nations, state and local authorities, corporations, and financial institutions. What are the two main strategies for raising capital used by issuers? ✔✔ Issuers can raise capital by offering deb t securities (such as bonds) or equity securities (like stocks). How do corporations and governments typically secure funding? ✔✔ They do so by issuing publicly traded debt instruments. What other names are used for publicly traded debt instruments? ✔✔ These can be referred to as bonds, notes, or other forms of debt. 2 How is a bond defined in financial terms? ✔✔ A bond is a type of security representing a loan made by the investor to the issuer, indicating the amount of debt owed. Who are the individuals or entities that buy bonds called? ✔✔ Creditors. What is another term used for stock? ✔✔ Equity. How is the term equity also expressed? ✔✔ As stock. Who is responsible for paying back the principal of a bond at a later date and g enerally makes interest payments throughout the bond's term? ✔✔ The issuer.
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