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Multiple Choice QuestionAll of the following are true about trustees except:Multiple choice question.trustees are usually banks or other financial institutions.a trustee is a financially independent firm.the Securities and Exchange Commission appoints trustees for corporate bond issues.trustees may bring legal action against the issuing company to protect bondholders' interests.

Question

Multiple Choice QuestionAll of the following are true about trustees except:Multiple choice question.trustees are usually banks or other financial institutions.a trustee is a financially independent firm.the Securities and Exchange Commission appoints trustees for corporate bond issues.trustees may bring legal action against the issuing company to protect bondholders' interests.

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Solution

All of the following are true about trustees except:

  1. Trustees are usually banks or other financial institutions.
  2. A trustee is a financially independent firm.
  3. The Securities and Exchange Commission appoints trustees for corporate bond issues.
  4. Trustees may bring legal action against the issuing company to protect bondholders' interests.

The correct answer is: The Securities and Exchange Commission appoints trustees for corporate bond issues.

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