Which function of an FI involves buying primary securities and issuing secondary securities?

Question

Quizplus · Accepted Answer

Asset transformation involves buying primary securities, such as loans or bonds, and converting them into secondary securities, such as stocks, for resale to investors. This process involves managing the risks associated with the primary securities and generating profits from the price difference between the two types of securities.

Which Function of an FI Involves Buying Primary Securities and Issuing