What are the three main components of the securities industry?

The correct response identifies the three main components of the securities industry as issuers, investors, and intermediaries.

Issuers are entities that create and offer new securities to raise capital, such as corporations issuing stock or governments issuing bonds. Investors are individuals or institutions that purchase these securities with the expectation of earning a return on their investment. Intermediaries, such as broker-dealers and investment banks, play a critical role in facilitating transactions between issuers and investors. They help in underwriting new issues, providing liquidity, and ensuring market efficiency.

This framework encompasses the essential roles within the industry, illustrating how capital flows from those who need it (issuers) to those who have it (investors), with intermediaries facilitating that process. Understanding this triad is crucial for grasping how the securities industry operates as a whole.