This section is from the book "Business Finance", by William Henry Lough. Also available from Amazon: Business Finance, A Practical Study of Financial Management in Private Business Concerns.
The word "public" suggests a large crowd of individuals, and the term "investing public" may easily call up a vivid picture of thousands of staid and prosperous persons who personally tuck away their own bonds in their strong boxes and whose chief labor consists in cutting off the coupons. This picture is to a certain degree true of the purchasers of those investments which have a slightly speculative tinge, such as bonds that sell on a basis of 5 1/2% or more. John Moody, however, is authority for the statement that the "gilt-edge" investment securities are taken chiefly, not by individuals, but by institutions. These securities sell on the basis of, say, 3% to 5 1/2%, and the individual investor is much more apt to be a contributor in some way to the support of these large investing institutions, rather than a direct purchaser of this type of securities.