Which of the following statement is TRUE for the Fixed Income Securities?

Q1- 14 July 2017.png

Answer: A. Holders of fixed-income securities are not owners, but the creditors

Fixed Income Securities are debt instrument where the issuer; a corporation or government; agreed to pay a predetermined amount of interest on a fixed schedule.

Unlike equity where the investor is the owner, the holder or investor has the creditor relationship with the issuer of fixed income securities.

The different types of fixed income securities include government securities (G-Sec), corporate bonds, commercial paper, treasury bills, strips etc.

Learn more:

  1. About Fixed Income Securities-General
  2. INTRODUCTION TO FIXED INCOME SECURITIES

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