What are the factors of debt securities, Financial Management

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What are the factors of debt securities

A legal agreement, known as a trust deed, is drawn between security holders and company issuing the debt securities. Every security issued under it has same right and protection.  Trust deed is a complicated legal document comprising restrictions on company, pledges made by company, and several other details. Trustee, generally a large bank or a financial institution, ensures that issuing corporation keeps its promises and obeys restrictions of the contract. Trustee is the watchdog for the debt securities holders since it is impossible for individual holders to keep an eye on functioning of the company.

 


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