Corporate bonds are bonds issued by joint-stock companies to raise funds from the public. Securities that show the creditor's rights of a company are called corporate bonds. The issuance of corporate bonds shall be decided by the board of directors, and a prospectus shall be prepared and submitted to the competent authority for approval. Corporate bonds have a prescribed format, which should be numbered and the relevant matters of issuing corporate bonds should be indicated on the back. Registered bonds is different from registered bonds-free, secured corporate bonds and unsecured corporate bonds. Corporate bonds have a fixed interest rate, and the income is generally unchanged. Bondholders are only creditors of the company and cannot participate in the same business decision. Bonds should be repaid at maturity. When the company is dissolved, bondholders have priority over shareholders to pay off the company's property.
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