Consider Figure, which describes an issue of American gold certificates.

a. Is this issue a primary or secondary market transaction?

b. Are the certificates primitive or derivative assets?

c. What market niche is filled by thisoffering?

Transcribed Image Text:

This announcement is neither an offer to sell nor a solicitation of an offer to huy any of these Certificates This offer is made oniy by the Offering Memorandum $100,000,000 NEW ISSUE July 7, 1987 AMERICAN GOLD CERTIFICAIES Due July 1,1991 American Gold Certificates represent physical allocated gold bullion insured and held in safekeeping at Bank of Delaware . Anytime during the four-year period, the certificate holder may reauest bhysical delivery of the gold. American U0 Copies of the Offering Memorandum may be abtained in any State fom only such of the undersigned as may legally offer these certificates in such State J. W. KORTH CAPITAL MARKETS, INC CowEN & Co IHE CHILAGO CORPORATION FIRST ALBANY CORPORATION INTERSTATE SECURITIES CORPORATION McDONALD & COMPANY RONEY & Co V INING-SPARKS SECIRITIES, ENC BAKER, YVATIS & C) BIRR, WILSON SECURITIES, INC. INDEPENDENCE SECURITIES, INC. DOMINICK & DOMINICK INCORPORATED GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC JANNEY MONTGOMERY ScoTT INC. PACIFIC SECURITIES. INC LJ MIC, INC WESTCAP SECURITIES, INC BARCLAY INVESTMENTS. INC. D. A. DAVIDSON & Co JESUP & LAMONT SECURITIES Co., INC. SCOTTSIKINGFEELOW, INC. UNDERwoOD, NEHAUS & Co SECURITIES, INC TEPHENS INCC INCORPURATED EMMETT A. LARKIN Co., INc. SEIDLER AMDEc SECURITIES INC. INCORPORATED