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ICMA FMFQ Exam - Topic 3 Question 21 Discussion

A company raises money in the capital markets by issuing a bond that is offered for sale by the issuing bank. Which of the following best describes this deal?
A) Primary market deal
B) Secondary market deal
C) Overdraft transaction
D) Drawdown on a borrowing facility

ICMA FMFQ Exam - Topic 3 Question 21 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 21
Topic #: 3
[All FMFQ Questions]

A company raises money in the capital markets by issuing a bond that is offered for sale by the issuing bank. Which of the following best describes this deal?

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Suggested Answer: A

by Jutta at May 05, 2022, 11:36 PM

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Marge
8 months ago
Really? I thought drawdowns were more common in these situations.
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Willard
8 months ago
No way, it's not an overdraft transaction!
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Precious
8 months ago
Wait, isn't this also a bit like a secondary market deal?
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Kallie
8 months ago
I agree, primary market makes the most sense here.
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Dortha
8 months ago
It's definitely a primary market deal!
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Noah
8 months ago
Overdraft transaction sounds wrong here, but I'm not completely confident about the difference between primary and secondary markets.
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Tamie
8 months ago
I practiced a similar question, and I think it was about how bonds are sold in the primary market. So, I might go with A.
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Kyoko
8 months ago
I'm a bit unsure, but I remember something about primary and secondary markets. Isn't a primary market where new securities are sold?
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Alverta
8 months ago
I think this is a primary market deal since the company is issuing the bond for the first time.
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Britt
9 months ago
I'm a bit confused by the wording of the question. I'll need to read it over a few times to make sure I understand the implications of each answer choice.
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Tammi
9 months ago
This question seems straightforward, I think I can handle it.
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Karl
9 months ago
Okay, I've got this. The question is asking about a process that provides reasonable assurance regarding the achievement of objectives. That sounds like it's describing internal control, so the answer must be B. Control Process.
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Shenika
9 months ago
Brainstorming makes total sense here - you can't solve a problem until you understand all the potential root causes. I'm pretty confident about option C.
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