This chapter described the different types of bonds governments and corporations issue, explained how bond prices are established, and discussed how investors estimate the rates of return they can expect to earn. We also discussed the various types of risks that investors face when they buy bonds. Read the rest of this entry »
Corporate bonds are traded primarily in the over-the-counter market. Most bonds are owned by and traded among the large financial institutions (for example, life insurance companies, mutual funds, and pension funds, all of which deal in very large blocks of securities), and it is relatively easy for the over-the-counter bond dealers to arrange the transfer of large blocks of bonds among the relatively few holders of the bonds. It would be much more difficult to conduct similar operations in the stock market, with its literally millions of large and small stockholders, so a higher percentage of stock trades occur on the exchanges. Read the rest of this entry »
Most of people in this world need entertainment for refreshing their mind that full of their daily life problem. And the cheap and easy entertainment they can get is by watching television. Television can be the part of someone life that can separate from their daily activity. With television, not only the entertainment that they can get, they also can know the latest and important information. With this the people will get the pleasure and mind refresher, also they can get the new knowledge that useful for their life. Read the rest of this entry »
Liquidation occurs if the company is deemed to be too far gone to be saved—if it is worth more dead than alive. If the bankruptcy court orders a liquidation, assets are sold off and the cash obtained is distributed as specified in Chapter 7 of the Bankruptcy Act. Here is the priority of claims: Read the rest of this entry »
During recessions, bankruptcies normally rise, and recent recessions are no exception. The 1991–1992 casualties included Pan Am, Carter Hawley Hale Stores, Continental Airlines, R. H. Macy & Company, Zale Corporation, and McCrory Corporation. The recession beginning in 2001 has already claimed Kmart and Enron, and there will likely be more bankruptcies in 2002 if the economy continues to decline. Because ofits importance, a brief discussion of bankruptcy is warranted. Read the rest of this entry »
A car is one of critical means of transportation needed in this modern world. Therefore the demand for this auto vehicle is increasing each year. Buying a car in cash perhaps could not be done by all people therefore getting an auto loan should be the best way to get this car. However there are some circumstances when we are late to pay the debt or even could not afford to pay it at all. A creditor may take offer the vehicle from us through certain extrajudicial process and this is known as auto repossession. Read the rest of this entry »
Having many kinds of debts should give us both frustration and hassling too. It certainly is hassling when our answering machine always leaves us messages from many debtors. Besides, it should be stressful to arrange them all in order to avoid miscalculation. Above of it should be very difficult to find a way to get settle them all and enjoy our lives free from all debts. All we need is perhaps some one to rely on to help us out of such messy financial condition. Read the rest of this entry »
Prior to the 1980s, fixed-income investors such as pension funds and insurance companies were generally unwilling to buy risky bonds, so it was almost impossible for risky companies to raise capital in the public bond markets. Then, in the late 1970s, Michael Milken of the investment banking firm Drexel Burnham Lambert, relying on historical studies that showed that risky bonds yielded more than enough to compensate for their risk, began to convince institutional investors of the merits of purchasing risky debt. Read the rest of this entry »
