A Eurobond issued in U.S. dollars can NOT be sold in the primary market to investors in which of the following countries?

Prepare for the Canon Financial Institute CFIRS Exam with flashcards and multiple choice questions. Each question comes with hints and explanations for better understanding. Get ready to excel in your exam!

A Eurobond is a type of bond that is issued in a currency different from the currency of the country in which it is issued. One key characteristic of Eurobonds is that they are generally sold in markets outside of the issuer's jurisdiction and are often exempt from regulation by the issuer's home country.

In the case of a Eurobond issued in U.S. dollars, it cannot be sold in the primary market to investors in the U.S. due to the regulatory framework that governs the issuance and distribution of securities in the United States. U.S. investors must typically purchase bonds that comply with specific regulatory requirements set forth by the Securities and Exchange Commission (SEC). Eurobonds, being sold in the primary market to U.S. investors, would not meet these requirements, thus prohibiting their sale directly in the U.S.

Investors in other countries, like Canada, Russia, or EEC countries, do not face the same restrictions when it comes to investing in Eurobonds, enabling these bonds to be marketed and sold freely in their respective markets.

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