Corporate Bond (Noun)
Meaning
A bond issued by a corporation; carries no claim to ownership and pays no dividends but payments to bondholders have priority over payments to stockholders; "a corporate bond is a safer investment than common stock in the same company".
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company issued a corporate bond to raise capital for its expansion plans, offering a fixed rate of return to investors.
- Investors seeking lower risk often prefer corporate bonds over stocks, as they provide a relatively stable source of income.
- The corporate bond market is a significant source of funding for many large corporations, allowing them to finance their operations and growth.
- When a company goes bankrupt, corporate bondholders are typically paid before stockholders, making bonds a safer investment option.
- The investment firm recommended a diversified portfolio that included a mix of stocks, corporate bonds, and other securities to minimize risk.