CHAPTER 36

CHAPTER 36 - CHAPTER SUMMARY DEBT SECURITIES Authority to...

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CHAPTER SUMMARY DEBT SECURITIES Authority to Issue Debt Securities Definitions Debt Security source of capital creating no ownership interest and involving the corporation’s promise to repay funds lent to it Bond a debt security Rule each corporation has the power to issue debt securities as determined by the board of directors Types of Debt Securities Unsecured Bonds called debentures; have only the obligation of the corporation behind them Secured Bonds are claims against a corporation’s general assets and also liens on specific property Income Bonds condition to some extent the payment of interest on corporate earnings Participating Bonds call for a stated percentage of return regardless of earnings, with additional payments dependent upon earnings Convertible Bonds may be exchanged for other securities Callable Bonds bonds subject to redemption EQUITY SECURITIES Mann CH 35- 1
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Issuance of Shares Definitions Equity Security source of capital creating an ownership interest in the corporation Share a proportionate ownership interest in a corporation Treasury Stock shares reacquired by a corporation
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CHAPTER 36 - CHAPTER SUMMARY DEBT SECURITIES Authority to...

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