Last answered:

04 Mar 2023

Posted on:

03 Mar 2023

0

Capital markets

what is the meaning of selling debt to the public

1 answers ( 0 marked as helpful)
Instructor
Posted on:

04 Mar 2023

1

Hi Clinton,

This is when a company borrows debt, but raises it from the public rather than going to the bank. In this case, sophisticated investors like funds and insurance companies buy bonds from the company. We call them the ''public'' because there's many of them (unlike when you work with a bank).

Best,
Ned

Submit an answer