n NISM Certifications
X NISM Series X
Medium

How are corporate bonds primarily raised?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Over the Counter

  2. B

    Public Issue

  3. Private Placement

    Correct answer

  4. D

    Auction

Why this is the answer

Corporate bonds are typically issued through private placements to a select group of institutional investors such as banks, mutual funds, and financial institutions.

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