Issuance of Bonds

Bonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets. The most common process of issuing bonds is through underwriting. In underwriting, one or more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an issuer and re-sell them to investors. Government bonds are typically auctioned.

The pictured bond was issued for the construction of the building now known as New York City Center. The elaborate engraving is typical of certificated bonds, in this case using the fraternal organization's logo, rather than neoclassical human figures, idealized versions of the corporation's business, or architectural elements, all common decorations on bonds. Coupons from this bond can be seen under Coupon. The bond and the coupons have no economic value today because the corporation became insolvent within a few years of the Wall Street Crash of 1929. The bond was purchased from a dealer of worthless securities, sometimes called wallpaper.