| corporate bond | |
noun | |
| a bond issued by a corporation; carries no claim to ownership and pays no dividends but payments to bondholders have priority over payments to stockholders; "a corporate bond is a safer investment than common stock in the same company" |
Corporate Bond
A debt security issued by a corporation, as opposed to those issued by the government.
Investopedia Commentary
A corporate bond typically has a par value of $1,000, is taxable, has a term maturity and is traded on a major exchange.
Related Links
Corporate Bonds: An Introduction To Credit Risk
Asset Allocation within Fixed Income
See also: Bond, Maturity Date, Municipal Bond, Par Value