Overview

In order to expand their business activities, corporations require adequate funding. Various methods can be employed in order to amass such funds, one of the most popular and successful being the pursuit of funding through the capital market. This method allows corporations to secure significant amounts of funding from investors through the issuance of securities.[1]

Two types of securities are available: equity-based securities and debt-based securities. While equity-based securities, specifically bonds, are generally the more familiar, certain types of debt-based securities have become hugely popular in recent years, resulting in sales of certain types of bonds actually overshadowing sales of stocks.[2]