Concept
What securities and financing tools help corporations raise funds?
IntroductionToBusiness OP 8D04gAa / Glossary
"Bond ratings: Letter grades assigned to bond issues to indicate their quality or level of risk; assigned by rating agencies such as Moody’s and Standard & Poor’s (S&P). Bonds: Long-term debt obligations (liabilities) issued by corporations and governments. Commercial paper: Unsecured short-term debt—an IOU—issued by a financially strong corporation. Common stock: A security that represents an ownership interest in a corporation. Dividends: Payments to stockholders from a corporation’s profits. Factoring: A form of short-term financing in which a firm sells its accounts receivable outright at a discount to a factor. Interest: A fixed amount of money paid by the issuer of a bond to the bondholder on a regular schedule, typically every six months; stated as the coupon rate. Investment bankers: Firms that act as intermediaries, buying securities from corporations and governments and reselling them to the public."
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