Management and Organizational Studies 2310A/B Chapter Notes - Chapter 15: Offering Circular, Corporate Bond, Debenture

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Danny Morrison

Document Summary

Private debt: debt that is not publically traded. Very common in young firm"s starting out. One disadvantage is because it is not publicly traded, private debt is illiquid meaning it"s hard to sell in a short time. One advantage is that it avoids the cost and delay of registration with a securities commission. Term loan: a bank loan that lasts for a specific term. Syndicated bank loan: a single loan that is funded by a group of banks rather than just a single bank. Revolving line of credit: a credit commitment for a specific time period, typically two years or three which a company can use as needed. Asset backed line of credit: a type of credit commitment in which the borrower secured a line of credit by pledging an asset as collateral. : a bond issue that does not trade on public market but rather is sold to a small group of investors.