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The way I was looking at it... technically by owning a stock you're exposed to the risk of the entire corporate legal structure (e.g. board, bylaws) as well as
by ethbro 7y ago
The way I was looking at it... technically by owning a stock you're exposed to the risk of the entire corporate legal structure (e.g. board, bylaws) as well as operational structure.
Compared to a bond, even one with esoteric clauses, that seems more complicated.
- H8crilA 7y agoWhen you have a bond you're exposed to the entire corporate structure too. What the board does affects you a lot. Except your contract is (sometimes) much more complicated. The primary reason why they want covenants is because credit holders do not get to influence management (except in Chapter 13, when they basically take over the company).