One of the primary reasons for investing in debt securities includes:
A)Receiving dividend payments.
B)Acquiring significant influence.
C)Earning interest revenue.
D)Deducting interest payments for tax purposes.

Question

Quizplus · Accepted Answer

Investing in debt securities allows an investor to earn interest revenue, which is typically paid regularly by the issuer of the security. In contrast to equity securities, debt securities do not provide dividend payments, and they do not provide the opportunity for the investor to acquire significant influence in the issuing company. While deducting interest payments for tax purposes may be a benefit of investing in debt securities for some investors, it is not a primary reason for investing in them.

One of the Primary Reasons for Investing in Debt Securities