Corporate Finance - Junk Bonds
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A) Would you still think investing in junk bonds from a new company with a lot of potential is without a doubt a bad idea?. Thoughts?
B) There is a reason why these types of bonds exist and there is a reason why people invest in them. However, before jumping in one needs to decide what all of the implications can be, what the risk is, and what happens if they loose their investment. Thoughts?
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The expert examines corporate finance junk bonds.
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A) Investing in junk bonds from a new company with potential is a great idea depending on the research done on the company. It's very common to not make a huge profit when a company is starting out. However, that does not mean that the company is not making a lot of sales. A company could have borrowed a lot of money from the bank to begin the business, in addition, to issuing bonds to finance equipment ...
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- MBA, Webster Univeristy
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