Business Securities - Assignment Example

Most bondholders defer their right to call a bond after the call protection period elapses on the grounds that they will save their money and accrue interests too.

A mortgage agreement is recorded in a legal document called a mortgage note. It will involve two parties i.e. the lender (mortgagee) and borrower (mortgagor). The borrower transfers the interests of real estate to the lender. The lender receives the proceeds from the real estate.

The investor must assess and analyze the bond issuer to determine the creditworthiness and the default status of the bond issuer. It is important to know if the bond issuer is insured.

Money market funds can be exempted or be advantaged on taxing and makes it more appealing than other safe funds. Money market account is safe in that principal is not guaranteed as compared to money market account which is insured (Hirt & Block, 1990).

Because a preferred stock is a form of hybrid security it poses traits of both a bond and a common stock. You have a fixed income like a bond and a sense of ownership as common stock.