When securities firms help corporations issue bonds, their primary role is as a(n)
A) intermediary.
B) lender (creditor).
C) investor.
D) B and C

Question

Quizplus · Accepted Answer

Securities firms act as intermediaries between the corporation issuing the bonds and the investors who will buy them. They help to market and sell the bonds to investors, as well as provide advice and guidance to the issuer on the terms of the bond offering. While securities firms may also invest in bonds themselves or lend money to corporations, their primary role in this scenario is as an intermediary. Therefore, options B and C are not applicable.

When Securities Firms Help Corporations Issue Bonds, Their Primary Role