A mutual fund whose objective is to seek high income and preservation of capital by investing mainly in bonds. The fund can be taxable or tax-free. Tax Exempt Security Bond Power A form used in the transfer of registered bonds from one owner to another. A bond power replicates the assignment form on the back of the bond certificate, but it is separated from the certificate. Although both achieve the same goal, a bond power has a safety advantage in being separate.
Ownership is reflected by an entry in the issuer's books.
This method of registering securities has grown in popularity because investors need not worry about the location of their certificates and it requires less paperwork for a brokerage firm. A stock's book value is determined by dividing the amount of stockholders' equity by the number of common shares outstanding. A company's book value may be of no relevance to its to market value. The lender's policies and the type of security determine the collateral's loan value. A security's lowest market price or the market's lowest level as determined by any of the major indexes.