APT Initiatives
APT Business & Economics Resources
Minimising Workloads, Maximising Performance
Established in 1999

Special Items

Bond (as a source of finance)

Where money to be raised is divided into smaller units (bonds) and potential lenders are invited to lend money to the business for a fixed period of time (usually long-term) and, usually, at a fixed rate of interest although the reward for investment might not be interest but other benefits, for example a supporters’ bond used to rebuild a stand at a rugby club could be reduced season ticket prices. Bond holders, (like debenture holders) are likely to have priority over all shareholders and, unlike dividends on shares, the interest must be paid even if the firm is not making a profit. However, unlike shareholders, bond holders do not own the company and do not have a right to vote. Consequently, there is no dilution of control.

Millstone Lodge, Eaton Upon Tern, Market Drayton, Shropshire, TF9 2BX - Tel : 01952 540877 - Fax : 01952 541230
Registered in England no.: 5211217 VAT Number: 815750626
www.apt-initiatives.com - sales@apt-initiatives.com | © Copyright 2008 - APT Initiatives Ltd

terms & conditions | sitemap

Valid HTML 4.01 Transitional Valid CSS!