What Are Commercial Bonds?
Three types of bonds are available to investors on the stock market by a financial intermediary: classic, exchange-traded, and commercial. The main differences between the issues of different types of bonds for issuers are in the requirements for sets of documents, terms of consideration, information disclosure, and registration costs. Commercial bonds are loans raised by the issuing company from a financial intermediary . In essence, it is borrowing on trust, the degree of which is expressed in the value of the interest rate. It would seem that the higher the rate, the more attractive, but no! The main risk of business bonds is an incorrect assessment of the issuer's credit quality. And the higher the rate, the more care and scrupulousness the investor needs to show when making a decision. Circulation on the over-the-counter market and initial public offering by private subscription make CBs similar to bank loans and promissory notes. "What does the bill of exchange have to d...