Debt Securities. Corporate, Municipal, and Government

Free FINRA Series 7 (General Securities Representative) lesson in Investment Products and Recommendations. 25 min read, ~3,732 words.

Corporate bond hierarchy: secured (mortgage, equipment trust) unsecured (debenture) subordinated debenture. Conversion ratio = par / conversion price. Parity = conversion ratio x stock price. Convert only when parity exceeds the bond or call price. GO bonds rely on taxing power and need voter approval; revenue bonds rely on project...

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