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Chicago and South Eastern Railway Co. - Unissued $1,000 Railroad Gold Bond

Inv# RB7077   Bond
Chicago and South Eastern Railway Co. - Unissued $1,000 Railroad Gold Bond
State(s): Illinois
Indiana
Years: 1891
Color: Green

Unissued $1,000 Gold Bond printed by Franklin Bank Note Co., New York. 5 full rows of coupons.

A bond is an instrument of indebtedness, under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to pay them interest (i.e. the coupon) as well as to repay the principal at the maturity. Interest is usually payable at fixed intervals (semiannual, annual, sometimes monthly). Very often the bond is negotiable, that is, the ownership of the instrument can be transferred in the secondary market. This means that once the transfer agents at the bank medallion-stamp the bond, it is highly liquid on the secondary market.

Thus a bond is a form of loan or IOU. Bonds provide the borrower with external funds to finance long-term investments or – in the case of government bonds – to finance current expenditure. Certificates of deposit (CDs) or short-term commercial paper are classified as money market instruments and not bonds: the main difference is the length of the term of the instrument.

Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity stake in a company (i.e. they are owners), whereas bondholders have a creditor stake in the company (i.e. they are lenders). Being a creditor, bondholders have priority over stockholders. This means they will be repaid in advance of stockholders, but will rank behind secured creditors, in the event of bankruptcy. Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks typically remain outstanding indefinitely. An exception is an irredeemable bond, which is a perpetuity, that is, a bond with no maturity.

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Condition: Excellent

A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.

Item ordered may not be exact piece shown. All original and authentic.
Price: $75.00