“Baby” Bonds

Chapter summary

This chapter examines “Baby” Bonds, using the author’s early-twentieth-century investment framework to explain how investors were expected to judge security quality, income, risk, and market conditions. It opens from the chapter’s own discussion: Although bonds are usually issued in one thousand dollar blocks, of late years many corporations have split their bonds up into “baby bonds,” or bonds of one hundred dollar value, in order to gain the participation of the small investor and saver. For example, among the high-grade (A) “baby bonds” for income only, the author would recommend to the prospective investor such issues as the following: Atlantic & Danville