TAILIEUCHUNG - INVESTMENT IN GOVERNMENT BONDS AND SECURITIES

Rule 2210 also generally requires mutual fund advertisements to be filed with FINRA’s Advertising Regulation Department. 11 This general filing requirement, however, only applies to mutua fund advertisements and therefore does not apply with respect to private fund advertisements. 12 FINRA nevertheless has the ability to inspect and review its members’ communications, including communications about private funds. In January 2003, the Advertising Regulation Department at FINRA’s predecessor, the National Association of Securities Dealers (NASD), conducted a sweep of broker-dealers to determine their level of compliance with the NASD and SEC rules that govern advertisements and sales literature for private. | INVESTMENT IN GOVERNMENT BONDS AND SECURITIES source Bureau of Treasury On many occasions the Philippine National Government or its agencies issue debt securities to finance deficits and development projects. Selling to the buying public originates from the Bureau of Treasury BTr . through a network of licensed dealers. Government securities GS are no longer certificated they are known as scriptless . GS discount and coupons are subject to 20 final income tax which is withheld upon floatation of Treasury Bills or upon payment of the coupon for Treasury Bonds. No other tax is imposed on the secondary market buyer. Government and government-owned and controlled corporations also offer shareholding to the public in the form of bonds or securities. Government securities are unconditional obligations of the State and backed by its full taxing power making them practically free from default. 1. Treasury Bills Treasury Bills T-bills are direct and unconditional obligations of the national government. They are issued by the BTr. They carry maturity of one year or less and can be traded in the secondary market before maturity. Various tenors of T-bills exist 1 91 day 2 182 or 3 364 days. Banks that comprise majority of the Government Security Eligible Dealers GSED bid for T-bills in the weekly auctions held by the BTr. The banks then resell the T-bills to investors. Treasury Bills do not bear interest. They are issued and sold at a discount from face value and are redeemed at maturity for the full face value of the instrument. 2. Treasury Notes Fixed Rate Treasury Notes FXTNs are direct and unconditional obligations of the national government. They are issued by the Bureau of Treasury BTr . They are interest bearing and carry a term of more than one year and can be traded in the secondary market before maturity. The tenors for these debt instruments can vary. 3. Retail Treasury Bonds Retail Treasury Bonds RTBs are like treasury notes but are usually longer in maturity 10 .

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