The Effect of Bond Rating Changes on Common Stock Prices?

Answer When a corporate bond is issued, it is rated by several rating agencies as to the timely payment of interest and principal based on the issuer's financial condition. Bond credit rating changes can ... Read More »

Top Q&A For: The Effect of Bond Rating Changes on Common Sto...

Why do bond prices go up when stock prices fall?

Stocks and bonds are competing investments that attract different classes of investors. Because of corporate structure, bonds offer less risk, while stocks are associated with greater profit potent... Read More »

What is bond rating?

Bonds are fixed-income securities. They have many different issuers, such as national, state, and municipal governments as well as businesses. There are two general classifications for bonds: inves... Read More »

Why do bond prices move up?

Bond prices move up when the current stated interest rate of the bond moves down. Bond prices are also based on changes in economic conditions, bond maturity and bond quality.When the Interest Rate... Read More »

What is a bond level rating?

Bond level rating refers to how risky a bond is. Risky bonds--those associated with uncertain companies or unstable governments--pay higher interest rates to an investor. Wall Street institutions e... Read More »