Introduction to Corporate Securities - Sources of Business Finance, Business Economics & Finance Video Lecture | Business Economics & Finance - B Com

everyone and thank you for tuning in to
the channel let's take a look at
corporate security so when we're talking
about corporate securities we're looking
at corporate bonds we're looking at
preferred stock and we're looking at
common stock so that's what we're
referring to when we're talking about
corporate security so let's look at
corporate bonds so these are debt
instruments so ever you you think of
bonds or corporate bonds these are debt
debt instruments they have a fixed life
to be repaid at maturity now as bonds
when they come due and are paid off the
corporation replaces debt with new bonds
they may reissue new bonds raise capital
raise cash through bonds so this is debt
raising cash through debt
let's look at preferred stock now this
is a little bit different than common
stock and you you're guaranteed a
dividend there's different types of
preferred stock we're not going to go
into that right now but it's least used
because the dividend is not tax
deductible so there's not a great
benefit on that in but however it does
exist and it is quite quite a Atul for a
corporation to raise capital look at
what we all all know and love which is
common stock and then this is when we
talk about debt and equity we're looking
at common stock for the most part
because it's sold by companies desiring
it to to get new equity capital this is
what's publicly traded this is what
we're looking at right and it may be
issued at an IPO or an initial initial
public offering or even a secondary
offering you've got Treasury stock which
is common stock that's bought back off
of the market so that the corporation
purchases its own stock and pulls it off
the market and remember there's no
maturity date for common stock there's
that there's no maturity date easily
transferable
there's voting rights so there's a lot
of benefits to common stock but these
are common stock preferred stock and
corporate bonds this is what we're
looking at when we mentioned corporate
securities thank you