Stock trading – Equipment obligations may be certificates or notes, the former if the equipment is leased from a trustee at a rental sufficient to pay off the debt, the latter if it is bought from the trustee, the sale being conditional until the obligation is met.

Equipment obligations generally are high-class securities, one reason being that the debt will be cleared up more rapidly than the equipment depreciates. Collateral Trust Bonds. These are covered by other securities owned by the issuing corporation. (As you examine the balance sheets of various corporations, you will find that many of them have holdings of associated or subsidiary companies, or simply income-producing stocks and bonds held as investments. DuPont's large holding of General Motors is a case in point. Owens-Illinois Glass and Corning Glass each own 33 per cent of Owens-Corning Fiberglas.

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