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Generally not...although each case is different. Some bonds have a direct first priority claim on certain assets that may be sold to pay them. It is very common that the bondholders get the Stock of the company in exchange for not getting paid and hence become owners of the company...which they can hope to improve and sell the stock of...to recover their investment.
What else can I help you with?
Is A debenture holder of the company a creditor of the company?
No, A debenture bond owner is just like any other bond owner. A debenture bond is an uninsured bond. The owner of a bond is just lending their money to a company for a long-term period. A bond is an example of a long-term debt. An owner of a company would be an example of an equity such as a stockholder (common, or preferred).
What is the major function of a Bond in commerce?
A bond is an instrument of indebtedness of the bond issuer to the holders. The issuer owes the holders a debt and pays them interest.
When a company during the Gilded Age era went bankrupt which group of people suffered financially?
The stock and bond holders
What is the different between a stock and a bond?
A stock represents a small 'ownership' unit, where a bond is a 'debt'. If the company makes profits or losses, stock holders take this first. If the company goes bankrupt, shareholders are wiped out and then debtholders wear the next pain.
Who are the stakeholders of Manchester city?
Bond holders
Does a corporation have other stakeholders besides its shareholders?
Yes. In the broadest sense of the term, a stakeholder is anyone who benefits financially by the company being in business (bond holders, employees, suppliers, etc.).
What does it mean to own a bond in a company?
Company BondsThere are two general ways to invest in a company. You can by stock in a company or you can purchase company bonds. By buying stock in a company you become a partial owner of that company. This entitles you to any dividends that may be paid and in general the more successful the company is the more your shares are worth.By buying bonds related to a specific company you are basically loaning that company money. That money is to be paid back at a specified rate of interest for a specified amount of time. You take on the roll of the bank in that you give the company a loan and now they must pay you back with interest. Should the company go out of business bond holders are more likely to get their money back than shareholders through the bankruptcy process. You will unlikely get all of your money back but you may get some of it. For that reasons companies that are considered riskier must pay a higher rate of interest to their bond holders.
What are debts of a corporation?
Everything that a company owes to third parties like its creditors and bond holders; basically, everything to be found on the right-hand side of a balance sheet (the 'liabilities'-side) except Capital.
Was the WW II debt ever repaid for World War 2 to bond holders?
No
When was Basildon Bond - company - created?
Basildon Bond - company - was created in 1911.
Difference between bond agreement and bond indenture?
What is the difference between a bond agreement and a bond indenture?Bond Agreement: A contract for privately placed debt.Bond Indenture: A blanket agreement between a corporation and its bond holders that states the interest rate, maturity date, and other terms and conditions of the bond issue.Based on these two definitions a bond agreement is more of a private agreement between the company and the bond purchaser where the bond indenture is more of a legal agreement. Bond agreement could get complicated if it isn't a trusted person where the bond indenture appears as a contractual agreement to keep people honest.
What is the difference between a convertible bond and a convertible debenture?
A convertible debenture is a type of convertible bond. However, a debenture is unsecured debt, which means that there is no collateral for the bond. The alternative to a debenture would be a secured bond such as a mortgage bond that would be secured by real estate. If the company goes out of business, the collateral for the secured bonds would be used to pay off those bonds and the holders of the debentures would be paid from whatever is leftover. Most convertible bonds are debentures.
