FRANK J. FABOZZI, PH.D., CFA, CPA
Professor of FinanceEDHEC Business School
MICHAEL G. FERRI, PH.D.
Professor of FinanceGeorge Mason University
STEVEN V. MANN, PH.D.
Professor of FinanceThe Moore School of BusinessUniversity of South Carolina
This chapter will explore some of the most important features of bonds, preferred stock, and structured products and provide the reader with a taxonomy of terms and concepts that will be useful in the reading of the specialized chapters to follow.
One important characteristic of a bond is the nature of its issuer. Although non-U.S. governments and firms raise capital in U.S. financial markets, the three largest issuers ...