4 ms·
> Promising to use funds in a specific way to generate a specific return If you also promise to return the money after the specified period, this sounds like a
by g42gregory 4y ago
> Promising to use funds in a specific way to generate a specific return
If you also promise to return the money after the specified period, this sounds like a definition of a fixed income bond, no?
- JumpCrisscross 4y ago> this sounds like a definition of a fixed income bond Bonds are securitised loans, which are not securities per se. It's a somewhat arbitrary boundary that rests on the degree to which a secondary market exists. But just because something is loan-like doesn't make it a security.
- legutierr 4y agoWhen is a bond not a security?
- JumpCrisscross 4y ago> When is a bond not a security Bonds are securities. Loans aren’t always. (Government debt in the form of Treasuries are securities. Government debt in the form of accounts payable are not.)
- deleted 4y ago[deleted]