The company promises to repay the principal and pay interest at a pre-agreed interest rate on a specific date in the future.
Legal characteristics of corporate bonds;
1. The holders of corporate bonds are creditors of the company and enjoy all creditor rights stipulated by the civil law, while the shareholders are shareholders of the company and enjoy shareholder rights stipulated by the company law.
2. The holders of corporate bonds, whether the company is profitable or not, have the right to ask the company to pay interest according to the agreement, while the stock holders can only get dividend distribution according to law if the company is profitable.
3. When the corporate bonds reach the agreed time limit, the company must repay the principal of the bonds, and shareholders can only request the distribution of the remaining property when the company is dissolved.
4. The holders of corporate bonds have the right to be paid off before shareholders, and shareholders can only ask for the distribution of the company's remaining property after all the debts of the company have been paid off.
5. The interest rate of corporate bonds is generally fixed and the risk is small, while the level of stock dividend distribution is closely related to the company's operation, so it often changes and the risk is great.
6. Different requirements for issuers. Stocks can only be issued by joint-stock companies, while corporate bonds can be issued by both joint-stock companies and limited liability companies.
Classification of corporate bond issuance:
1, general corporate bonds and convertible corporate bonds.
2. Registered bonds and registered bonds.
3. Listed company bonds and unlisted company bonds.
4. Publicly issued corporate bonds and non-publicly issued corporate bonds.