A bond issued by an incorporated company, the ownership of which is represented by snares of stock; a bond of a joint-stock company. Bonds issued by governments, States, or any territorial subdivision thereof, although corporation bonds in one sense are not so known in the banking world, but are known as " government bonds," "State bonds," and "municipal bonds." Occasionally an exception is made, as " corporation stock2 of the City of New York," meaning New York City bonds. Investment bonds are in general covered by two classes, " corporation " and "municipal." (Read "Bond.")

The former are, usually, secured by a mortgage upon all, or a portion, of the property of the company obligating itself to pay the same. They can be issued only by permission and under the direction of the company's shareholders.

1 The East India Co. incorporated in 1600 is about the earliest example of a large modern corporation.

In England the word " company " is used as the equivalent to our "corporation," the latter term having reference to a municipal body only.

In Great Britain this is also a common name for municipal securities.

It is customary to protect the rights of bondholders by selecting some trustee - usually a trust company - to hold the mortgage against the property, and to carry out certain acts necessary to the issue. (See " Trustee.")

A bond of this class states on its face many of the rights, both of the issuing company and the holder, and refers to the deed of trust in further accordance with which the issue is created. (See "Deed of Trust.")