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Why a corporation would issue bonds?

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Anonymous

14y ago
Updated: 7/15/2023

because i am boss

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Related Questions

Why would a corporation issue callable bonds?

because i am boss


Can a nonprofit corporation pay interest on bonds they issue?

Anyone purchasing a bond would do so with the expectation of income from the transaction, just like making a commercial loan. Bonds issued by a non-profit would be no different.


Who decides to issue bonds for a corporation?

corporation, the board of directors is responsible for making the decisions related to a bond issue including determining how much money is to be raised, what type of bond will be sold, what the maturity date will be, and what the interest rate will be.


Why would a company issue bonds instead of selling stock?

The goal of any corporation is to try to earn the biggest return possible for each shareholder. If you and I decided to start a corporation and we each decided we would own 50 shares of stock, then the corporation as a whole would have 100 shares of stock. If we decided to issue more shares of stock then we would be effectively selling off a part of our business to other investors. So if we issued an additional 100 shares, then we would each own only one quarter of the company rather than half of it. This would be bad news because we would be entitled to a smaller share of the corporation's earnings, and would have less control over the company. Unfortunately this is sometimes thkfiniuefwuvreg f1r8 ficle only option for corporations that need to raise cash to expand their businesses. Especially those which are just starting out. Well established corporations however have another option. Sell bonds. A bond is essentially a loan which is broken up into individual bonds and sold to investors. By raising money through bonds, the corporation does not have to dilute (that is issue more shares) the existing shareholders like it would if it issued stock. The drawback to bonds is that most investors will shy away from lending their hard-earned money to corporations which they are not confident will be able to pay them back. Consequently a lot of corporations are not able to find buyers for their bonds, or may have to issue them at ridiculously high interest rates.


Why corporation could not issue bonds before it sells stock?

Stock has to be there so it is corporation. PUBLIC corporation need to establish itself and show report etc. to get rating. Kind of like show pay stub to establish credit card.


Why would the JasonMicah Corporation decide to issue stocks?

its w


Why would the Lana limited corporation decide to issue stocks?

because stonks


How would you define debenture bonds?

Corporations with sound credit standing are able to issue bonds without pledging assets. Such bonds are called debenture bonds, or unsecured bonds.


Do corporations issue stocks and bonds?

They do in fact issue stocks and bonds.


When the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price the bonds are?

callable bonds


Who are the creditors of a corporation?

Bondholders are creditors of a corporation; they have loaned the corporation money and received bonds as evidence of the corporation's. Stockholders, both common and preferred, are owners of a corporation. (STOCKHOLDERS ARE NOT THE CREDITOR)


Who are the main creditors of a corporation?

Bondholders are creditors of a corporation; they have loaned the corporation money and received bonds as evidence of the corporation's. Stockholders, both common and preferred, are owners of a corporation. (STOCKHOLDERS ARE NOT THE CREDITOR)