One of the primary reasons for investing in debt securities includes:

Question

Quizplus · Accepted Answer

One of the primary reasons for investing in debt securities is to earn interest revenue. Debt securities are essentially loans made by investors to the issuer, and the issuer pays interest to investors in exchange for the use of their funds. Unlike stocks, debt securities typically do not provide dividend payments, nor do they offer investors the opportunity to acquire significant influence over the issuer. While investors may be able to deduct interest payments for tax purposes if they hold certain types of debt securities, this is not typically considered a primary reason for investing in them.

One of the Primary Reasons for Investing in Debt Securities