Question

Corporations may use the securities markets to obtain debt capital by selling corporate bonds. Bonds are “securities” and thus are governed by the federal securities laws. To issue new bonds, a corporation will usually seek to have the bond rated by a credit rating agency such as Moody’s, Standard & Poor’s, or Fitch.
A bondholder would be concerned about whether a corporation has purchased a favorable bond rating. Should a shareholder also be worried? Explain.


$1.99
Sales0
Views19
Comments0
  • CreatedOctober 02, 2015
  • Files Included
Post your question
5000