Anyone here good with stocks and bonds and their meanings? - GoFuckYourself.com

Retributi0n · 12-16-2007, 06:02 AM

"acting for Solstarz in relation to its issue of a 10 million convertible bond loan with Webster Bank"

I am arguing with someone about the meaning of the above sentance.

He is saying that this company was given 10 mill in cash by that bank.

I am saying the company put up 10 mill worth of bonds for purchase through the bank.

Anyone know better here?

Shaze · 12-16-2007, 06:23 AM

i think you are correct. bonds are agreements between a company and investors where investors are giving money to the company who is agreeing to pay it back at a later date with interest. so they are basically issuing bonds through the bank.

Retributi0n · 12-16-2007, 06:32 AM

What does that mean exactly though? They received 10 mill in cash , or have to first sell the bonds to get cash?

infecto · 12-16-2007, 06:35 AM

The bank gave the company 10mil the company gave the bank 10mil in bonds that can be converted into equity.

Retributi0n · 12-16-2007, 06:37 AM

Can any company do that? What do you think the prerequisites are for something like that?

infecto · 12-16-2007, 06:42 AM

Well to have common stock they need to follow many rules and regs from the sec. Other then that any company can do it. I mean corp. bonds are rated by different agencies so if they are no good it will just be a junk bond.

12-16-2007, 06:02 AM	#1
Retributi0n So Fucking Banned Join Date: Oct 2007 Posts: 393	Anyone here good with stocks and bonds and their meanings? "acting for Solstarz in relation to its issue of a 10 million convertible bond loan with Webster Bank" I am arguing with someone about the meaning of the above sentance. He is saying that this company was given 10 mill in cash by that bank. I am saying the company put up 10 mill worth of bonds for purchase through the bank. Anyone know better here?

12-16-2007, 06:23 AM	#2
Shaze Confirmed User Join Date: Oct 2003 Location: Cyberspace Posts: 2,662	i think you are correct. bonds are agreements between a company and investors where investors are giving money to the company who is agreeing to pay it back at a later date with interest. so they are basically issuing bonds through the bank. __________________ Adult Search Engine Japanese Porn Thai Porn

12-16-2007, 06:32 AM	#3
Retributi0n So Fucking Banned Join Date: Oct 2007 Posts: 393	What does that mean exactly though? They received 10 mill in cash , or have to first sell the bonds to get cash?

12-16-2007, 06:35 AM	#4
infecto Confirmed User Join Date: May 2003 Posts: 1,697	The bank gave the company 10mil the company gave the bank 10mil in bonds that can be converted into equity.

12-16-2007, 06:37 AM	#5
Retributi0n So Fucking Banned Join Date: Oct 2007 Posts: 393	Can any company do that? What do you think the prerequisites are for something like that?

12-16-2007, 06:42 AM	#6
infecto Confirmed User Join Date: May 2003 Posts: 1,697	Well to have common stock they need to follow many rules and regs from the sec. Other then that any company can do it. I mean corp. bonds are rated by different agencies so if they are no good it will just be a junk bond.