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letter bond |
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letter bond A bond not registered with the SEC or other regulatory agency and privately placed with an investor. Because letter bonds are not registered, they are not allowed to be traded publicly. For this reason, when a letter bond is issued, the bondholder must send a letter to the SEC stating that he/she does not intend to resell the bond, and he/she has it only for long-term investment purposes. See also: Letter security. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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