Skip over navigation
Encyclopedia
Dictionary
Thesaurus

More Sponsored Links For:

bond
Columbia Encyclopedia entry: bond
Bond, in finance, usually a formal certificate of indebtedness issued in writing by governments or business corporations in return for loans. It bears interest and promises to pay a certain sum of money to the holder after a definite period, usually 10 to 20 years. Security is usually pledged against a bond; unsecured bonds are regarded as a long-term obligation on the capital of the issuing body. Some bonds are convertible upon maturity into the stock of the issuing company. One method used to retire bonds is the sinking fund; in such a case the issuing body buys back some of its bonds each year and holds them itself, applying the interest to the fund. The entire bond issue, most of which the firm has already acquired, is then retired on maturity. In the case of serial bonds, part of the issue is called in and paid for in full each year. Bonds were sold by the U.S. government to finance both World Wars and are still an important money-raising device. Government bonds are backed by the full faith and credit of the government issuing them, including its taxing power, and sometimes also by specifically designated security. Bonds are usually bought by those wishing conservative investment. A junk bond has a risky credit rating because it is issued by companies without an established earnings history or with a questionable credit history. Junk bonds have increasingly been used to help finance the purchase of companies, especially in leveraged buyouts.

See L. A. Jones, Bonds and Bond Securities (4th ed., 4 vol., 1935–50); T. R. Atkinson, Trends in Corporate Bond Quality (1967); A. Rabinowitz, Municipal Bond Finance and Administration (1969); H. D. Sherman and R. E. Schrager, Junk Bonds and Tender Offer Financing (1987); D. R. Nichols, The Personal Investor's Complete Book of Bonds (1988).

Columbia Encyclopedia search results: bond
Results 1 - 10  of 262
  • junk bond

    Junk bond, a bond that involves greater than usual risk as an investment and pays a relatively high rate of interest, typically issued by a company lacking an established earnings history or h...

  • chemical bond

    Chemical bond, mechanism whereby atoms combine to form molecules. There is a chemical bond between two atoms or groups of atoms when the forces acting between them are strong enough to lead to...

  • Bond Street

    Bond Street, in Westminster, London, England, famous for its fashionable shops. Among the noted residents of Bond St. have been the authors Laurence Sterne, James Boswell, and Jonathan Swift; ...

  • Bond, Julian

    Bond, Julian (Horace Julian Bond), 1940–, U.S. civil-rights leader, b. Nashville, Tenn. As a student at Morehouse College, he participated in sit-ins at segregated Atlanta restaurants. He was ...

  • Bonds, Barry Lamar

    Bonds, Barry Lamar, 1964–, American baseball player, b. Riverside, Calif. Bonds grew up surrounded by baseball; his father, Bobby Bonds, was a San Francisco Giants outfielder (1968–74), and th...

  • Bond, George Phillips

    Bond, George Phillips, 1825–65, American astronomer, b. near Boston, grad. Harvard, 1845. He became the assistant of his father, William Cranch Bond, and in 1859 succeeded him as director of t...

  • Bond, Sir Robert

    Bond, Sir Robert, 1857–1927, Newfoundland political leader. He was educated in England and later entered Newfoundland politics. In 1890, he negotiated a reciprocity agreement between Newfoundl...

  • Bond, William Cranch

    Bond, William Cranch, 1789–1859, American astronomer, b. Portland, Maine. He early aided his father in the trades of silversmith and clockmaker in Boston. He soon became an expert in the makin...

  • Bond, Carrie Jacobs

    Bond, Carrie Jacobs, 1862–1946, American songwriter, b. Janesville, Wis. A self-taught musician, she composed about 175 songs, both words and music, gave concerts of them, and even published t...

  • Stockdale, James Bond

    Stockdale, James Bond, 1923–2005, U.S. naval officer, b. Abingdon, Ill.; grad. U.S. Naval Academy, 1947. A fighter pilot and highly decorated career naval officer (1946–79), he was the highest...

More Sponsored Links For:

bond
1 2 3 4 5 6 7 8 9 10 Next

Video Results

powered by Truveo
Toggle Results

Reference Center To Go

Get Dictionary at your fingertips!

Download the Toolbar Now
About This Page | Browse Directory | Tell Us What You Think
© 2009 ReferenceCenter.com. All Rights Reserved.