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Thomson One - Business School Edition - Walt Disney Prospectus - Essay Example

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Author : holly54

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Thomson One - Business School Edition - Walt Disney Prospectus 1) Indicate the type of debt did Disney offers to the public for sale and discuss the various approaches Disney incorporated to ensure successful marketability of these securities Walt Disney Company is an organization in the entertainment industry based in California…

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Thomson One - Business School Edition - Walt Disney Prospectus

This is a type of debt whereby the investors are paid an interest rate for their money. This debt is different from others in that its interest rate resets after every four months. A company that offers this kind of debt has the right to sell bonds whose benchmark is different from those that are linked to the United States of America. Companies embrace this type of debt since they are able to hedge against risks related to interest rates and at the same time remain in corporates. Its main aim was to attract long term investors into buying the stocks. The company targeted both the existing as well as new investors. The fact that the debentures were offered as floating debt was one major factor that increased their marketability. The interest rates were to be offered in quarterly basis and this served to attract many people to buy the bonds. In addition, the bonds’ interests could be reviewed after every four months, a factor that could also increase its marketability. They were to be sold on the basis of shareholding. Those who already have shares at the company would fill an enrolment form to get the bonds at a minimum lower amount. ...
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