ramzes

bankers selling EXISTING government securities that they already own...aka TRADING THEM on the second market. everything else was PRIMARY market.

the ibanker one was SECONDARY market activity

draz

billbelemy22, was that the wording, "securities that they already own"? Or was is simply "investment bankers selling govt securities"?

Govts use i bankers to sell securities - i bankers often act as underwriters or middlemen - in these cases they are not necessarily trading them on a secondary market - they are simply in these cases agents for the originator.

In the CFAI text, however, shelf registrations are discussed in the Primary Markets section, so while I don't think the distinction is clear enough in the text or that it was so in the exam, from this context alone I reckon Shelf was (rightly or wrongly) probably wrong.

RobertA

ibankers DO NOT underwrite govt securities!

it said ibankers reselling or selling govt bonds. Ibanks have govt bond positions. when they sell them, they are selling them on the secondary markets.

both others were primary market activiites.

shelf registration is selling bond precleared to be sold on the primary market for hte FIRST TIME. they were simply registered to be sold, then put "on the shelf" when they are eventually sold it is a primary activity.

it was 100% the ibanker answer

siavosh

Probably i banker was the answer.

I bankers may not underwrite govt securities, but they do assist in selling them - i.e. as agents, rather than secondary sellers.

Shelf registrations are not, incidentally, necessarily bonds - they are also issues of common stock. Only a company listed on a secondary market can make use of a shelf registration.