Abstract
Corporations finance their operations by selling stock and bonds. Owning a share of stock means partial ownership of the company. Stockholders share in both the profits and losses of the company. Owning a bond is different. When you buy a bond you are loaning money to the corporation, though bonds, unlike loans, are tradeable. The corporation is obligated to pay back the principal and to pay interest as stipulated by the bond.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2011 Springer Science+Business Media, LLC
About this chapter
Cite this chapter
Ruppert, D. (2011). Fixed Income Securities. In: Statistics and Data Analysis for Financial Engineering. Springer Texts in Statistics. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-7787-8_3
Download citation
DOI: https://doi.org/10.1007/978-1-4419-7787-8_3
Published:
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4419-7786-1
Online ISBN: 978-1-4419-7787-8
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)