- What is a corporation Bond? A debt security issued by a corporation.
- How are these bonds? They have promises by the company to pay the interest and make repayment too,either by foreclosure by the investor or by buy back by the corporation.
- Can they be secured or unsecured ones? Yes.
- If the assets are posted as security then they are called secured.
- If on the goodwill of the company they are issued they are called unsecured.
- Why are these called high risk investments?
- Because everything depends upon the profits and stability and the earning capacity of the corporation.
- How are these bonds helpful to the corporation?
- major source of capital for many businesses along with equity and bank loans/lines of credit.
- will be continued........
Monday, December 16, 2013
know more about bonds
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