Question

Bonds can only be issued by corporations and government entities. Thus, the “Bowie Bonds” sold by David Bowie were not honored as lawful securities.

Answer 1

Bonds are generally issued by the corporation and the government because they want to raise the debt and they will have a motivation towards raising of debt in order to fund their activities in the long run & in the short run.

Bowie Bonds which are sold by David bowie are not lawful securities because these securities are celebrity bonds and they are most like personal bonds which are issued and which are backed by the Assets of the individuals but these bonds are are irregular bonds which are not used to the rules and regulation and the bonds in order to raise money for their operations.

so these kind of bonds are generally considered celebrity bonds and they are not considered lawful security