Which of the following is false?
A) Even if a corporation is not currently issuing bonds,you could still buy a bond directly from the corporation.
B) Bonds that are rated AAA from Standard and Poor's have received the highest rating possible.
C) A bond that is rated in the D category indicates that the bond issuer cannot pay off the bond.
D) It is possible to buy a bond from someone who purchased and still holds the bond he bought from the corporation at an earlier date.

Question

Quizplus · Accepted Answer

A) is false because once a corporation issues bonds and they are bought by investors, the corporation itself does not sell these bonds directly anymore. Secondary trading of the bonds occurs between investors, not directly from the corporation to new buyers.

Which of the Following Is False