Section 3, Fundamentals of Corporate Bonds

Corporate Bond

Is an instrument of debt issued by a corporation that pays interest as a percentage of par value and are traded over the counter

quoted price x $10

Dollar Value

Leverage Buy-Out

is the takeover of a company using barrowed funds, Generally the assets of the tarte company are used as security for the loans

Spin-Off

is a corporate divestiture that results in the subsidiary of a company becoming an independent company operating on its own

Holding Company

is a corporation which owns enough of the coting shares of another corporation that it can influence that companies polices, managements and board of directors

Trust Indenture Act of 1939

Federal law requiring all corporate bonds to be issued under an INDENTURE or deed of trust.