insurance company
Strategic Concepts & Mechanics
Primary Evidence
"The investment banker can divide and sell the ownership and rights in a corporation in a great many ways, a piece at a time. For instance, he can sell first-mortgage bonds to an insurance company, at the prime rate of interest. He could also offer debentures, which, though they take a second position to the bonds, offer a higher rate of interest in compensation. For investors interested in a speculative fillip (in case the company does very well), there are convertible debentures that can be turned into common stock. He can issue preferred shares (convertible or straight), which tend to be especially attractive to corporate investors, because preferred dividends passing from one corporation to another are taxed only seven percent. Finally, there is the common stock, the basic equity of a corporation, but the availability of capital does not stop there; there are also bank loans, accounts receivable (which may be financed with a factor), warrants to buy stock, and various other ways to draw investment capital into a corporation."
"The investment banker can divide and sell the ownership and rights in a corporation in a great many ways, a piece at a time. For instance, he can sell first-mortgage bonds to an insurance company, at the prime rate of interest. He could also offer debentures, which, though they take a second position to the bonds, offer a higher rate of interest in compensation. For investors interested in a speculative fillip (in case the company does very well), there are convertible debentures that can be turned into common stock. He can issue preferred shares (convertible or straight), which tend to be especially attractive to corporate investors, because preferred dividends passing from one corporation to another are taxed only seven percent. Finally, there is the common stock, the basic equity of a corporation, but the availability of capital does not stop there; there are also bank loans, accounts receivable (which may be financed with a factor), warrants to buy stock, and various other ways to draw investment capital into a corporation."