Corporate bonds

[failed_trad3r]

Can corporations stop paying interests on bonds they issue?

 

[Bob111]

is that the guy, who call daytraders dumb just yesterday?
stop humiliating yourself on public...it's called default..-

http://www.investopedia.com/terms/d/default2.asp

. The failure to promptly pay interest or principal when due

http://www.elitetrader.com/vb/showthread.php?s=&threadid=202427&perpage=6&pagenumber=1

 

[failed_trad3r]

Quote from Bob111:

is that the guy, who call daytraders dumb just yesterday?
stop humiliating yourself on public...it's called default..-

http://www.investopedia.com/terms/d/default2.asp




http://www.elitetrader.com/vb/showthread.php?s=&threadid=202427&perpage=6&pagenumber=1

lol didnt know that.

BTW, can a company issue dividends and default on a bond to pay dividends?

 

[Bob111]

don't' think so...there is certain priorities and common stock,preferred stocks(and likely their dividends) are typically last on the list


http://en.wikipedia.org/wiki/Seniority_(financial)

http://www.investopedia.com/university/bonds/

 

[sjfan]

Well.... they can - in which case they are in default; They'll need to seek chapter 11 protection to stay off the creditors. Seniority and priority only matters in terms of liquidation, which is complicated by the bankruptcy process. In anycase, the OP's question is idiotic.

Quote from Bob111:

don't' think so...there is certain priorities and common stock,preferred stocks(and likely their dividends) are typically last on the list


http://en.wikipedia.org/wiki/Seniority_(financial)

http://www.investopedia.com/university/bonds/