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12 Cards in this Set
- Front
- Back
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•Common stockholders and preferred stockholders
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are owners of a corporation
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•Warrant holders and rights holders do not have an ownership stake unless
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they exercise their option to buy
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•Bondholders are
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•creditors of a corporation; not owners
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•Convertible bondholders
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are creditors of a corporation; to become owners, they must convert
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•Bondholders receive
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interest, paid at a stated rate
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stockholders receive
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dividends, if declared by the Board of Directors
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•Bondholders are repaid
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principal at a stated maturity date, as compared to stockholders where there is no maturity
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•The "obligor" on the bond issue is the person
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to whom the bondholder lent his or her money. The obligor or debtor is the borrower of the funds
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•Term bonds
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all issued on the same day
all mature on the same date have the same "term" (the same number of years to maturity) |
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•Serial bonds
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issued on the same date; mature on sequential dates in the future; thus each "serial" maturity has a different term (a different number of years to maturity)
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•Series bonds
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(which are rarely issued) are issued on sequential dates; and all mature on the same date.
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•Term issues are quoted
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on a percentage of par value (bonds have a standard $1,000 par value)
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