Baby Bond

A “baby bond” refers to a series of bonds or notes, generally offered pursuant to an effective registration statement, by the issuer and having a small denomination of $25 or $100 per bond (unlike most bonds, which are issued in $1000 minimum denominations). A baby bond generally will be listed and traded on a national securities exchange, and may bear a CUSIP number typically associated with an equity security. It is designed to be marketed and sold to retail investors.