answersLogoWhite

0


Best Answer

For their supposed security. That is, the likelihood of a government default on a bond is significantly less than that any other type of bond. So, people who want as close to an absolute guaranty that their investment will pay what it says use government bonds.

In addition, in many cases, government bonds provide tax incentives; for instance, in the United States, many government securities are free from Federal Income tax on their gains.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why are government securities popular invesments?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What are exactly calamos invesments?

Calamos is a global investment handler. They develop strategies that maximize the potential of convertible securities to generate excess returns and manage risks.


What are different Types of invesments?

Forex


What is the difference between government securities market and corporate debt securities market?

Government Securities Market : Consists of securities issued by the State government and the Central government. This include Central Government securities, Treasury bills and State Development Loans. Debt securities market : Is a market for the issuance, trading and settlement in fixed income securities of various types. Fixed income securities can be issued by a wide range of organizations including the Central and State Governments, public bodies, statutory corporations, banks and institutions and corporate bodies.


What are the example of Malaysian Government Securities?

Examples of Malaysian Government Securities include Malaysian Government Securities (MGS), Malaysian Treasury Bills (MTB), and Malaysian Islamic Treasury Bills (MITB). These securities are issued by the Malaysian government to raise funds from investors and are considered low-risk investments due to the government's backing.


What are securities dealers?

The member who purchase and sale government securities on the stock exchange are known as security dealer.The dealer should have information about the several kinds of government securities.


Who issued government securities in India?

Rbi issues the govt securities in India


What has the author Lars Tybjerg written?

Lars Tybjerg has written: 'Danish government securities' -- subject(s): Government securities


What government agency overseas the trading of securities?

The Securities and Exchange Commission or SEC for short.


A government investment in businesses guaranteeing repayment?

government securities


Trading securities are debt securities that the investor has the intent to hold to maturity?

trading securities are not necessarily debt securities. trading securities can be defined as securities which investors buy for the purpose of further trade, they can be stocks of any companies, Government securities and debt securities with the intention to trade in near future. debt secrities can be trade or can be hold by investor till maturity. Government securituies can also hold till maturities.


Which government securities are marketable and which are non-marketable?

list the names of marketable securities used in pakistan


Which government securities are marketable and which non-marketable?

list the names of marketable securities used in Pakistan