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Guaranteed Stock


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Guaranteed stock is a bond that is issued by a company or a public body where the investor is given the comfort of knowing a third party is guaranteeing the issue.

So, if a company issues a bond (a stock), it may be that its parent company guarantees to stand behind the issue and ensure that interest payments are paid to the investor. (It may also guarantee that capital will be repaid.) In the case of a public body, the government would provide the guarantee.

See Also: Online share dealing service Stockmarket Centre

Last Updated: May 2007 © Moneyextra.com

 

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