Liliana Pierce February 29, 2020 Promissory Note
#2: price of a ,000 promissory note is 50,000-just like a bank CD. Myth Buster: Promissory notes really are similar to cash or bank CDs. They have been promises to cash, maybe not actual . always about debt repayment. Consequently, their value has been discounted they lack marketability, liquidity, enforceability, adequate collateral security, proper , and also appropriate interest rate.
Basic elements note discounts No promissory note market . Most financial assets have been bought and sold market place. It may be considered a physical location the New York Stock exchange or it can be an market place. all comfortable with stock markets, bond markets, cattle markets, used car markets, gold markets, silver markets, etc.. But, no promissory note market place exists. All note transactions are done , between the seller and the ; they negotiate with each other, and the outcomes of the transaction-the cost paid-is simply them.
Convertible notes hybrids securities offering some protections due bondholders-- shield and status if occurs, with a predictable income--and also the prospect of upside gain in the equity does well. Exactly why are semi notes issued?
the borrower there's a strong need to know all the financial and details regarding the borrower. The simple question is" the debtor fulfill its promise"? Can there be a powerful, or at least a reasonable, expectation that the borrower has the to gets the to repay? A be in thinking the ability to refund is present, , objective by the investor indicate . Good, honest intentions are no for monetary . confuse"expect" with"reality".