What is NOT an investment objective for a corporate bond?

Prepare for the SIE Test with flashcards and multiple-choice questions, enhanced with hints and explanations. Gear up for your securities industry exam!

Corporate bonds are primarily issued to provide investors with stable income through interest payments, making income a key investment objective. Preservation of capital is also a crucial objective, as corporate bonds generally aim to maintain the principal investment, especially when held to maturity. Speculation can happen in the bond market, where investors may buy bonds in anticipation of price increases, but this involves a higher risk approach rather than a fundamental objective of investing in corporate bonds.

However, growth is not a typical investment objective associated with corporate bonds. Investors seeking growth usually turn to equities or other vehicles that have the potential for substantive capital appreciation over time. Corporate bonds, while they can appreciate in value, are primarily designed for income stability and capital preservation, rather than significant growth in investments.

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