2. Differences in the use of bond issuance funds;
3. Differences in credit basis;
4. Differences in control procedures;
5. Differences in market functions.
1. Corporate bonds refer to loan certificates issued by joint-stock companies for additional capital within a certain period of time (such as 10 or 20 years). For the holder, it is only a voucher to provide loans to the company, reflecting only an ordinary creditor-debtor relationship. Although the holder has no right to participate in the operation and management activities of the joint-stock company, he can charge the company fixed interest at par value every year, and the order of collecting interest should take precedence over shareholders' dividends. When the joint-stock company goes bankrupt, he can also get back the principal first. Corporate bonds have a long term, generally more than 10 years. Once the bond expires, the joint-stock company must repay the principal and redeem the bond.
2. The concept of corporate bonds in textbooks is basically defined as follows: "Corporate bonds are securities issued by companies in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time". At the same time, it further shows the creditor-debtor relationship between bond issuing companies and bond investors. The bondholder of a company is the creditor of the company, not the owner of the company, which is the biggest difference from the stock holder. Bondholders have the right to receive interest from the company according to the agreed conditions and recover the principal at maturity. Earning interest takes precedence over shareholders' dividends, and also takes precedence over shareholders' recovery of principal when the company goes bankrupt and liquidates. However, bondholders cannot participate in the operation, management and other activities of the company.
3. First of all, as a kind of "securities", corporate bonds are not ordinary commodities or commodities, but legal documents that can prove economic rights and interests. "Securities" is the general name of all kinds of creditor's rights and property ownership certificates that can obtain certain income, and it is a certificate used to prove that the holder of securities owns and obtains the corresponding rights and interests.
4. Secondly, corporate bonds are "marketable securities", which reflect and represent a certain economic value and have a wide range of social acceptance, and can generally be transferred and circulated as financial instruments. Therefore, in this sense, "marketable securities" is a kind of ownership certificate, which must generally indicate the face value to prove that the holder has the right to obtain certain income on schedule and can be freely transferred and traded. It has no value in itself, but it represents a certain property right. The holder can directly obtain a certain amount of goods, currency, interest, dividends and other income. Because this kind of securities can be traded and circulated in the securities market, it objectively has a transaction price.