In a bond offering,financial advisors MOST often buy bonds of the company ________.

Question

Quizplus · Accepted Answer

Financial advisors typically buy bonds of the company at a discount (lower than face value) in order to earn a profit when they are sold to investors. This allows them to purchase more bonds for their clients with the same amount of investment capital. Buying at face value or higher than face value would not provide the same potential for profit. Buying at twice face value or par value is unlikely and not common practice.

In a Bond Offering,financial Advisors MOST Often Buy Bonds of the Company